Hackers steal $9.5 million from GateHub

Another day, another cryptocurrency heist. Hackers have breached over 100 Ripple $XRP▲4.21% (XRP) Ledger wallets managed by service provider GateHub. If that wasn’t bad enough, additional reports suggest the attackers have siphoned off more than $10 million worth of XRP.

The company admitted to the security breach in a preliminary statement posted on its website.

“Recently, we have been notified by our customers and community members about funds on their XRP Ledger wallets being stolen and immediately started monitoring network activity, and conducted an extensive internal investigation,” wrote GateHub chief Enej Pungercar. Unfortunately, the company has yet to identify what caused the issue.

“We have however detected an increased amount of API calls (with valid access tokens) coming from a small number of IP addresses which might be how the perpetrator gained access to encrypted secret keys,” the company said.

“That, however, still doesn’t explain how the perpetrator was able to gain other required information needed to decrypt the secret keys.

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

“At the moment we estimate that approximately 100 XRP Ledger wallets were compromised,” Pungercar added. “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.”

XRP enthusiast Thomas Silkjær, who first noticed the suspicious activity, estimates that the hackers have thieved nearly $10 million worth of cryptocurrency (23,200,000XRP), $5.5 million (13,100,000XRP) of which  has “already been laundered through exchanges and mixer services.”

Among other services, the attackers relied on Binance, Changelly, KuCoin, Huobi, and HitBTC to convert the funds.

In the meantime, GateHub says it has emailed all users possibly affected by the theft with instructions how to protect their funds. “If you have not received an email from us, then we have no reason to believe your account was compromised,” the company added.

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