Ripple has recently faced a hacking incident involving the unauthorized access of 237.68 million XRP by a hacker.
This development has raised concerns evident in the significant selling pressure on XRP, causing the coin’s price to drop by approximately 5% before slowly recovering today.
Ripple Executive Speaks on XRP Hack
In response to the hacking incident, Chris Larsen, a prominent figure at Ripple and one of the founders of the crypto ledger project, issued a clarification on Twitter (X) to provide insight into the case. The clarification addresses the XRP Hack Case.
The breach was elucidated by blockchain analysis firm Lookonchain, which shared information on Twitter about funds in the form of XRP being taken from one of the founder’s wallets, Chris Larsen.
The tweet specifies that four wallets belonging to Chris Larsen were compromised, resulting in a total theft of 237.68 million XRP, equivalent to $117.35 million at the time of the incident.
Following the circulation of this news, with assistance from ZachXBT, a Twitter analyst known for uncovering hacking-related information, Chris Larsen, both a victim and a senior figure at Ripple, promptly published a clarification regarding the hack today.
This clarification states that the compromised wallets belonged to Chris Larsen personally and were not associated with Ripple as a company. Chris Larsen assures that funds controlled by Ripple remain secure and untouched by the hackers.
According to Larsen, the breach occurred as the hackers gained access to some of his private wallets. Currently, efforts are underway to secure these funds, as Chris Larsen has sought assistance from several exchanges to freeze the wallets linked to the hackers and has involved the relevant authorities.
Majority of Exchanges Extend Assistance
Concerning crypto exchange assistance, several major names are currently involved in helping secure Chris Larsen’s funds and minimize the selling of the compromised XRP.
One notable contributor is Binance, the world’s largest exchange at present. Richard Teng, CEO of Binance, publicly announced via Twitter that $4.2 million worth of XRP had been successfully frozen, hindering the hackers from selling.
Although this amount is significantly less than the overall $117.35 million stolen, this step has aided in a further correction of XRP prices, as it is now ensured that the hackers will be unable to sell immediately.
Justin Sun, through his Twitter account, also made statements regarding his exchange, HTX, stating that accounts suspected to be involved in the hacking have been frozen. Unfortunately, he did not disclose the amount of XRP saved, raising concerns that the hackers may have obtained some coins ready for sale.
These concerns have led to selling pressure, as most XRP investors are aware that the ownership allocations for Ripple’s three founders, including Chris Larsen, hold significant sway over XRP prices.
As of now, XRP prices remain relatively stagnant, awaiting further updates on the recovery of the hacked XRP. The latest news indicates that Ripple is collaborating with authorities to locate the hacker, though historical crypto hacking incidents suggest this effort may be challenging.
Therefore, current hopes rest on cooperation with centralized exchanges, as they have the capability to freeze accounts involved, minimizing the potential sale of the compromised XRP.