Ripple’s Co-founder XRP Hack Shows Internal Links to Ripple

The hack of Ripple’s co-founder has been linked back to company accounts, raising concerns about insider threats. Is it true?

Chris Larsen portraid as a hacker, wearing a hoodie.
Created by Gabor Kovacs from DailyCoin
  • Chris Larsen has recently lost $112.5 million in XRP in a sophisticated cyber attack.
  • Hacken has uncovered connections between the stolen funds and wallets linked to Ripple.
  • Hacken may have had an oversight in their research, as the links to Ripple have been uncovered.


Blockchain analytics platform Hacken has uncovered connections between a major security breach targeting Ripple’s co-founder Chris Larsen and accounts potentially linked to the company itself. 

Ripple Co-Founder Hacked: Was it an Insider Job?

This development has sent shockwaves through the cryptocurrency community, raising concerns about internal security measures and the vulnerability of even the most established industry players but is the report accurate?

On January 31st, Larsen disclosed the theft of 213 million XRP, valued at approximately $112.5 million at the time, from his personal wallets. Hacken’s investigation revealed a complex laundering scheme involving eight wallets, with a significant portion of the stolen funds funneled through a single wallet dubbed “rHyqB.”

However, intrigue arose when further analysis linked “rHyqB” to another wallet, “rU1bPM4,” which had prior transactions with Larsen and Ripple, including a substantial $64.6 million transfer. “rU1bPM4” also interacted with an intermediate wallet used by the attacker, fueling speculation about potential insider involvement.

Adding to the complexity, “rU1bPM4” was found to have transferred funds to a Kraken deposit address used by the attacker in 2020, suggesting a pre-existing link to XRP. While Hacken cautions against definitive conclusions, these connections raise serious questions about internal security protocols at Ripple.

Hacken Skips on Due Diligence

Unfortunately for Hacken, all XRP deposits to Kraken are made to the same address, rendering the highlighted address simply the ‘only’ deposit address for Kraken. 

This explanation can actually be found on Kraken’s support website, confirming the single deposit address with unique destination tags used for individual account identification. This makes it more of a misstep in research rather than a gotcha moment for the blockchain analytics platform.

On the Flipside

  • The question of how the hackers gained access to Larsen’s wallet and the true purpose of the identified connections remain unanswered.
  • The address that Hacken had brought up with links to Ripple is not mysterious, evident from Kraken’s support website.

Why This Matters

While seemingly brushed under the rug, the discovery of potential internal links to the major hack of Chris Larsen’s XRP wallet could raise critical questions about industry-wide security protocols against insider threats.

If you’re curious to know more about XRP’s bullish signs, and what the monthly chart reveals, check out this article:
Ripple’s XRP Eyes $1 as Monthly Chart Reveals Bullish Signs

Want to know how the SEC vs Ripple case nearing the remedies phase could impact XRP? This article dives into it:
SEC vs. Ripple Case Nears Remedies Phase: How It Impacts XRP

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.