Binance Halts $4.2 Million in XRP: $112 Million Hack

On Feb 2, 2024

Binance took action to freeze
$4.2 million worth of XRP believed to be associated with the $112 million
Ripple hack. This marks the largest cryptocurrency hack of 2024 thus far,
stirring concerns within the digital asset community.

Binance CEO Richard Teng
confirmed the freeze through a post on the social media platform X, where he
acknowledged the efforts of on-chain investigator ZachXBT and the Ripple team
for their collaboration in identifying the exploited address. The move was part
of a broader effort to mitigate the fallout from the hack.

Thomas Silkjær, head of analytics
and compliance at the XRP Ledger Foundation, claimed credit for the
foundation’s early investigation into the issue, adding a layer of complexity
to the attribution of efforts.

Initial speculation surrounding
the hack suggested that Ripple itself had been compromised. However, Ripple
co-founder Chris Larsen clarified that it was his personal accounts, not the
company, that were targeted. Larsen assured the public that Ripple’s systems
remained secure despite the breach.

The hacker behind the exploit
notably avoided using crypto mixer services or decentralized exchanges to
obscure their identity. This departure from recent trends raised eyebrows
within the cryptocurrency community, indicating potential shifts in tactics among
malicious actors.

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

Freezing Funds and Collaborating with Law Enforcement

ZachXBT disclosed that the
exploited account was initially attributed to Ripple in XRP block explorers,
sparking confusion regarding the nature of the hack. Meanwhile, Larsen
confirmed that approximately 213 million XRP, valued at $112.5 million, had been
stolen from his personal accounts.

In response, Ripple has engaged
in discussions with various crypto exchanges to freeze the exploited funds and
has notified law enforcement agencies to aid in the investigation.

The perpetrators attempted to
launder the stolen XRP through multiple exchanges, including MEXC, Gate,
Binance, Kraken, OKX, HTX, and HitBTC. While Binance has taken
measures to freeze some of the stolen funds, other exchanges such as OKX and
Kraken have yet to disclose their actions regarding the hack.

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

Freezing Funds and Collaborating with Law Enforcement

In response, Ripple has engaged
in discussions with various crypto exchanges to freeze the exploited funds and
has notified law enforcement agencies to aid in the investigation.

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