Binance freezes $4.2m in stolen XRP

An exploit connected to XRP issuer Ripple has crypto exchanges on alert as multiple platforms collaborate to track $112.5 million in stolen assets. 

Binance CEO Richard Teng said his exchange froze accounts with $4.2 million in Ripple’s XRP siphoned by unknown exploiters late last month. The amount comes to nearly 8.3 million XRP.

Teng promised his company would continue working with Ripple and relevant parties to facilitate a thorough recovery. 

We will continue to support Ripple in their investigations and their efforts to retrieve back the funds, including closely monitoring the majority of funds still in the exploiter’s external wallets in case they deposit to Binance.

Richard Teng, Binance CEO

The Binance CEO also extended gratitude to blockchain sleuth ZachXBT, who first flagged the suspicious transactions on Jan. 31, as reported by crypto.news. Zach published findings of a 213 million XRP theft and subsequent disbursement of the funds across exchanges. 

Ripple co-founder and executive chairman Chris Larsen clarified that the funds were his shortly after. Larsen disclosed unauthorized access to his personal accounts but withheld specifics on how the breach happened. 

The event has been odd since it deviated from the general hack pattern, draining funds as fast as possible and utilizing crypto mixers like Tornado Cash to obfuscate footprints. The hack occurred over an extended period, and exploiters stole XRP for at least 10 hours before depositing on centralized exchanges like Binance. 

In other Ripple-related news, XRP’s issuer is still embroiled in legal proceedings with the U.S. Securities and Exchange Commission (SEC) over digital asset sales allegedly violating federal laws. The status of institutional sales remains in contention after Judge Analisa Torres ruled that retail and exchange sales did not constitute an investment contract.

However, the SEC dismissed one section of its lawsuits against Ripple and its executives.