Binance Freezes $4.2 Million in XRP Following Hack on Ripple Co-Founder’s Wallet
Binance has taken decisive action by freezing $4.2 million worth of XRP following a $112 million hack on the personal wallet of Ripple co-founder Chris Larsen. In response to the breach, Binance acted swiftly to support fund recovery and prevent unauthorized use.
Quick Take:
- Binance takes action by freezing $4.2 million in XRP following a $112 million hack on Ripple co-founder Chris Larsen’s wallet.
- The hacker exploited Larsen’s accounts, not Ripple itself, leading to early speculation and confusion about the nature of the breach.
- Binance took swift action by helping Ripple recover stolen funds.
- The hacker did not use mixer services or decentralized exchanges, despite recent trends in exploit strategies.
It appears that the hacker was not targeting Ripple itself, but rather Chris Larsen’s personal accounts. Larsen clarified the nature of the breach and said that Ripple’s systems remained secure despite the compromise of his personal XRP accounts and the theft of 213 million XRP.
As per Larsen,
“There was unauthorized access to a few of my personal XRP accounts (not @Ripple) – we were quickly able to catch the problem and notify exchanges to freeze the affected addresses. Law enforcement is already involved.”
The hacker attempted to launder the stolen XRP through various exchanges, including MEXC, Gate.io, Binance, Kraken, OKX, HTX, and HitBTC. Therefore, it added another layer of complexity to the incident.
Larsen says he is currently in talks with exchanges to freeze the stolen funds. The event has also raised questions about the security measures for personal crypto accounts.
Binance’s Decisive Response Saves the Day!
Binance CEO Richard Teng revealed the freezing of $4.2 million in stolen XRP in a post on the social media platform X. He expressed gratitude to cryptocurrency detective ZachXBT and the Ripple team for their coordination and assistance.
After finding out early on about the exploit that occurred at @Ripple, we’re happy to say that the #Binance team has managed to freeze $4.2 Million worth of $XRP stolen by the exploiter.
We appreciate both the communities efforts in flagging it to exchanges – as always @zachxbt…
— Richard Teng (@_RichardTeng) February 1, 2024
Teng reiterated that the platform is committed to ensuring the integrity and security of the crypto ecosystem. Binance pledged ongoing support for Ripple’s investigations and recovery efforts. Moreover, the platform emphasizes the importance of collaboration in addressing cyber attacks.
In an interesting development, it was revealed that the hacker did not use any crypto mixers to hide the trail of stolen assets. The hacker’s choice not to use crypto mixer services or decentralized exchanges deviates from recent trends in exploit strategies.
Typically, exploiters have avoided centralized exchanges to prevent the freezing of funds. By freezing stolen funds, Binance indicates it closely monitors the attackers’ external wallets, anticipating attempts to deposit funds.
The incident highlights the significance of collaboration among various entities in the crypto space to address and mitigate the consequences of cyber attacks. Binance’s efforts demonstrate its willingness to contribute to the security and stability of the ecosystem. This trend aligns with the platform’s previous cases, where it assisted other affected entities.
The incident serves as a reminder of the challenges posed by evolving exploit strategies and the need for continuous security measures. As investigations unfold, the crypto industry will monitor coordinated efforts to recover stolen funds and strengthen the security of crypto accounts.
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Afroz Ahmad
