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Cryptocurrency Wallet Service GateHub Loses Over $9M in XRP To Hackers In Security Breach: Report

By Tracy Hannes | June 10, 2019
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Cryptocurrency Wallet Service GateHub Loses Over $9M in XRP To Hackers In Security Breach: Report

Cryptocurrency wallet service GateHub reportedly lost around 23,200,000 XRP (more than $9 million) in a recent hack.

In a preliminary report dated June 06, GateHub estimated the incident to have affected approximately 100 XRP Ledger wallets. It said that it was notified by its customers and community members “about funds on their XRP Ledger wallets being stolen.”

Soon after, it started an internal investigation in which it detected an increased amount of API calls (with valid access tokens) coming from a small number of IP addresses. GateHub suspected this to the way by which hackers got access to encrypted secret keys.

In an online post on Medium, community member Thomas Silkjær revealed that it was his team that had notified GateHub of the security breach. Based on their independent investigation, he said:

“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.”

GateHub said that it is working with a professional IT forensics team to determine whether its system was compromised or not. It has also notified appropriate law enforcement agencies about the incident.

XRP is currently the third largest cryptocurrency by market capitalization and is trading at $0.42 at the time of writing.

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