XRP suffers $150M loss as Ripple co-founder’s private keys are compromised in hack

XRP, the digital currency associated with the Ripple network, suffered a major security breach resulting in the loss of approximately $150 million after a hacker compromised the private keys of Ripple co-founder Chris Larsen. This incident has raised serious security concerns within the crypto community regarding the vulnerability of storing private keys in password managers like LastPass.

Blockchain investigator ZachXBT brought to light the connection between the massive theft of XRP tokens and the LastPass security breach that occurred in 2022. According to ZachXBT’s findings, the recent hacking of Larsen’s wallet was a direct result of his private keys being stored in the compromised password manager, as confirmed by a U.S. law enforcement forfeiture complaint.

The theft was first disclosed by Larsen on January 31, 2024, following ZachXBT’s revelation that over 200 million XRP tokens had been stolen, amounting to $112.5 million at the time. Larsen made it clear that the breach only impacted his personal accounts and not the corporate holdings of Ripple. Despite the significant loss suffered individually, Ripple remained unaffected by the security incident.

In a court filing dated March 6th, it was reported that over 283 million XRP tokens were stolen from Larsen, equating to approximately $708 million at current market rates. The document alluded to the use of an online password manager in the theft methodology, pointing towards LastPass as the source of the compromised private keys.

The incident involving Larsen is part of a larger trend in cryptocurrency thefts linked to LastPass vulnerabilities. ZachXBT’s investigations have uncovered several significant thefts of cryptocurrencies associated with the LastPass security breach, indicating the systematic exploitation of the compromised password manager by malicious actors.

This case underscores the importance of implementing secure storage practices for private keys in the cryptocurrency space, particularly for high-value wallets. While password managers are generally considered secure, the breach involving Chris Larsen’s private keys highlights the susceptibility of even sophisticated security solutions to cyber threats.

The increased valuation of the stolen XRP tokens, now standing at $708 million, indicates a substantial appreciation in XRP’s price since the initial breach occurred in January. This demonstrates the significant financial impact that security breaches can have on individual stakeholders and the broader cryptocurrency market.