A Whopping $10 Million in XRP Lost In a Recent GateHub Hack

By Enterprise Security Magazine | Tuesday, July 02, 2019

More and more safety loopholes are making themselves evident in the cryptocurrency platforms.  The recent hack on GateHub, which compromised around 100 XRP ledger wallets and stole about $10 million confirms this.

Fremont, CA: A preliminary report by crypto currency wallet GateHub confirms a massive hack, which has lead to a theft of about $10 Million in XRP.

“At the moment we estimate that approximately 100 XRP ledger wallets were compromised. So far it looks like all the victims had their XRP Ledger wallets hosted on GateHub, but we cannot yet rule out that some wallets were not,” informs the official report by GateHub.

As soon as the hack was confirmed, GateHub began an extensive inquiry. The investigation is underway and so far has ruled out any possibility of suspicious logins, any unauthorized access to APIs, or brute forcing. However, an increased number of API calls were obtained from a small number of IP addresses. This disproportionate ratio is being analyzed, albeit it wouldn’t be able to throw light on how hackers could unlock other information required to carry out an effective decrypting of the secret codes.

This incident is a strong reminder that the cryptocurrency industry has ceased to be ‘the unhackable’. The recent attacks on blockchains would have been merely theoretical a few years ago. But, when you consider the attacks on the cryptocurrency sector since 2017, the amount involved is worth around $2 billion worth. Many of the attackers were high-end professional hackers.

In a similar incident, last month, Binance, one among the world’s largest crypto currency exchanges, reported a theft of $40 million worth of bitcoin. This time, hackers were able to steal around 7000 bitcoin, through just one transaction. More than one method was utilized to extract the huge amount of money.

All these factors indicate that the current security levels employed in the crypto currency industry are long due for revision and replacement.

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