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GateHub loses $10 Million XRP in a recent attack

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GateHub loses $10 Million XRP in a recent attack

In a recent cyber-attack on cryptocurrency, hackers stole around 100 XRP Ledger wallets. According to the sources, the hackers stole 100 XRP from GateHub, a popular cryptocurrency wallet service. GateHub said about the stolen XRP tokens on 6th of June in a preliminary statement.

GateHub said in a statement that the theft was brought to notice by some of the notable customers & community members. According to GateHub, these members and customers found that the XRP funds on their wallets aren’t there. Later, the company said that the hackers compromise around 100 XRP wallets.

How did GateHub know that a hacker stole XRP tokens?

Moreover, GateHub did not know about the proceedings of the thieving activities which took place on the platform. Instead, the company started to investigate if something is wrong with the wallets. On the contrary, the company found that there is an increase in the application programming interface call. And these calls came from a limited number of Internet Protocol addresses. Thus, GateHub thinks that this is how the person responsible for hacking got access to the cryptocurrency secret keys.

Thomas Silkjaer, one of the notable community members, was one of the first people to warn GateHub regarding the breach. According to Thomas’s statement, on the 1st of June, the community members found out that a hack took place on the platform. Afterward, the investigation began, the result of the study was that account lost 201,000 XRP via Gatehub.net.

Silkjaer’s report on the missing XRP from customer and community member’s wallets

Additionally, Silkjaer also said that the culprit account stole a substantial amount of XRP account with the help of Gatehub.net.

On the 5th of June, Silkjaer said, the platform became aware that there is a theft of 23,200,000 XRP. Upon converting the cryptocurrency token into fiat currency, the amount becomes $9.5 million. By the looks of it, the hacker stole XRP token from around 80-90 victim. Secondly, more than 13,100,000 XRP, which is approximately $5.7 million, was a subject of money laundering.

GateHub community tracks down the hackers

XRP Forensics, a group of XRP community members, are going to work for preventing and countering scams on XRP Ledger. The Forensics members came up with much more detail about the theft.

GateHub said that it is still carrying out the investigation and that is the reason why they can’t confirm anything. But, GateHub assured that it would provide the necessary details when the investigation is completed.

The tale of cryptocurrency and money laundering

Earlier in June, Chainalysis, a blockchain intelligence firm, came up with a report. According to the report, around 64% of total ransomware attack implements cash-out strategies with the help of laundering. The laundering funds occurs via significant cryptocurrency exchanges.

On the other hand, around 12% of the mixing service involve money laundering via cryptocurrency, according to different ransomware strategies. Another report suggests that 6% of the peer-to-peer networks go out to dark web marketplaces and providers of merchant services. It is still unclear if 9% of the ransomware remains unspent.

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