ZachXBT Reveals $3 Million XRP Theft from US Wallet

A recent cybercrime incident in the United States involved the theft of 1.2 million XRP, equivalent to $3 million, from a user’s wallet. The on-chain investigator ZachXBT uncovered this theft and shared the details with the public.

The hackers responsible for this theft created more than 120 orders on October 12 to convert XRP into TRX using the Bridgers aggregator. By the 15th, they had consolidated the stolen funds on the Tron network and proceeded to launder them through over-the-counter exchanges associated with Huione, the world’s largest illegal marketplace.

One of the key factors that led to this theft was the victim’s lack of experience in handling cryptocurrency. The user thought they were using an Ellipal cold storage wallet but, in reality, ended up dealing with a hot wallet, which is more vulnerable to hacks.

ZachXBT pointed out that there are systemic issues at play in the cryptocurrency space that make such thefts more common. For instance, many wallet manufacturers do not adequately educate users on the differences between custodial and non-custodial products, making them more susceptible to phishing attacks and scams.

Moreover, there is a shortage of qualified investigators in law enforcement agencies to tackle these cybercrimes effectively. This leads to a situation where the number of reports far exceeds the capabilities of authorities to address them promptly.

The expert highlighted that some jurisdictions, such as the United States, the Netherlands, Singapore, and France, have more effective systems in place to deal with these issues. However, the success of recovery efforts ultimately depends on the specific executor handling the case.

Furthermore, ZachXBT cautioned against relying on companies offering fund recovery services, noting that a majority of them are predatory in nature. These firms often charge exorbitant fees for basic reports with little actionable information, preying on desperate victims seeking to recover their stolen assets.

Despite the prevalence of hacking attacks in the cryptocurrency industry, there has been a slight decrease in overall losses in the third quarter. According to CertiK analysts, losses due to hacking fell by 37% to $509 million during this period.

In conclusion, the theft of 1.2 million XRP serves as a stark reminder of the risks associated with storing and managing digital assets. It underscores the importance of user education, regulatory frameworks, and law enforcement capabilities in combating cybercrime in the cryptocurrency space.