Crypto Wallet Service GateHub Hacked, Over $9M In XRP Stolen

Crime, News | June 10, 2019 By:

Crypto wallet service GateHub has announced that hackers have breached over 100 Ripple (XRP) Ledger wallets on its platform.

GateHub revealed in a preliminary report that they have been notified by their customers and community members about funds on their XRP Ledger wallets being stolen. While they have not identified any nefarious activities on its platform, they started an extensive internal investigation and detected an increased amount of API calls (with valid access tokens) coming from a small number of IP addresses.

“All access tokens were disabled on June 1st after which the suspicious API calls were stopped,” the company said. “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.”

Community member Thomas Silkjær, who first noticed the suspicious activity, said in an online post that they immediately started an investigation after receiving reports of a theft of 201,000 XRP.

“As of writing this report, 2019–06–05 16:00 UTC, we gather that ~23,200,000 XRP has been stolen from 80–90 victims, of which ~13,100,000 XRP have already been laundered through exchanges and mixer services,” Silkjær said.

GateHub said that they are working closely with a professional IT forensics team to determine whether their system was compromised or not. Appropriate law enforcement agencies were also notified about the incident.

“We will work diligently with them to help track the perpetrator who did this,” GateHub said.