Hackers Reportedly Steal $10 Million in XRP via GateHub Breach

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Crypto wallet service provider GateHub has released a preliminary statement acknowledging that hackers compromised XRP Ledger wallets and stolen crypto worth nearly $10 million.

In the statement shared on June 6, GateHub announced that it received complaints from a number of its customers as well as other community members regarding the theft of funds from users’ wallets.

According to the preliminary report, hackers succeeded in compromising close to 100 XRP Ledger wallets.

The platform reported that initial investigations had not uncovered any nefarious activities that may have occurred on its network.

However, the investigations had revealed how hackers may have accessed encrypted secret keys. Per the company, there had been an increase in the numbers of application programming interface (API) calls that emanated from certain IP addresses.

Thomas Silkjær, a community member and one of the first people to alert GateHub, the breach was discovered on June 1. He wrote in a Medium post that investigations started immediately they learned of an attack in which 201,000 XRP had been stolen.

According to Silkjær, their investigation revealed that the account from which the attackers stole the XRP had been “managed through Gatehub.net.”

They also discovered that the account responsible for the theft (r9do2Ar8k64NxgLD6oJoywaxQhUS57Ck8k) had managed to steal “substantial amounts” of XRP from many accounts that were probably also managed via the Gatehub platform.

By June 5, the hackers had compromised accounts belonging to 80-90 people and stolen approximately 23,200,000 XRP. The estimated value of these tokens is currently close to $9.5 million.

Silkjær also notes that the hackers had already laundered close to 13,100,000 XRP, worth an estimated $5.37 million. According to him, the funds were laundered through various cryptocurrency exchanges as well as crypto mixers.

GateHub is still investigating the incident and noted in its statement that the company cannot draw any official conclusions at the moment.

The allegation that the funds have already been laundered through crypto exchanges and mixers comes barely a week after blockchain intelligence startup Chainalysis reported that research had revealed 64% of ransomware payments were laundered via cryptocurrency exchanges.

The Chainalysis report also found out that 12% of ransomware funds were laundered through mixing services while a further 6% went onto peer-to-peer networks.

Although a number of crypto ransomware funds also got laundered through darknet sites and other merchant services providers, 9% of all such funds remained unspent, Chainalysis reported.


Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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