Crypto Theft: $3.05M XRP Lost Due to Wallet Misuse
A crypto enthusiast lost $3.05 million in XRP after a security breach.The incident highlights the risks of misusing cold wallets.
On October 12, a U.S. resident’s Ellipal cold wallet was drained of 1.2 million XRP. The victim mistakenly imported their seed phrase into the ellipal mobile app, turning the cold wallet into a hot one.
This action exposed the wallet to online threats. Crypto investigator ZachXBT traced the stolen funds to a Southeast Asian laundering ring.
Here’s how the hackers laundered the XRP:
- They used Bridgers, a cross-chain bridge, to swap XRP into Tron (TRX).
- Over 120 transactions were made, seemingly going to Binance.
- All tokens were then moved into a single Tron wallet.
- the funds were transferred off-chain using OTC desks linked to Huione.
Huione is an illicit online marketplace with ties to various scams. It has been sanctioned by the U.S. government for facilitating illegal crypto transactions.
This case serves as a reminder of the importance of proper wallet management. Users must understand the risks of exposing their seed phrases online.
For more details, check out ZachXBT’s tweet.
