Cryptocurrency

GateHub Issues Update on $10 Million XRP Hack


GateHub has issued an update on the efforts to recover from the hack suffered earlier in June 2019. Hackers managed to steal about $10 million worth of XRP tokens from the cryptocurrency wallet platform.

Apart from exchanges proper, bad actors continue to assail virtual currency custody providers in a bid to get a hold of potentially valuable virtual currencies. Stakeholders hope that incoming international money laundering laws will put a dampener on such activities as bitcoin and other cryptos become more challenging to funnel covertly

GateHub Preventing Funneling of XRP Loot

In an official statement, the cryptocurrency custodial service provider says it has made significant progress in its efforts to salvage the situation in the aftermath of the attack.

As previously reported by BTCManager, GateHub suffered a security breach earlier in June 2019 with the hackers able to steal about 23 million XRP tokens valued at over $10 million. Reports at the time indicated that about 100 addresses were compromised during the theft.

According to the statement, GateHub succeeded in blacklisting many of the malicious addresses suspected to be connected with the attackers. This move is part of the company’s aim to recover at least 90 percent of the stolen funds.

An excerpt from the statement which provides further details on the modalities reads:

“We are working on improving our risk management system, on building closer connections with the community and crypto investigating officials to react faster and sharper should the situation repeat.”

Already, GateHub says it has recovered more than 500,000 XRP currently worth close to $200,000. The company says it plans to do more in the coming days and weeks to rescue the remaining stolen funds.

Freeze on Recovered XRP

The report also mentioned that the company had placed a freeze on all recovered funds. GateHub says these frozen XRP are now securely held in cold wallet storage.

There is yet no word on the vulnerability exploited by the intruders. GateHub admitted that it hadn’t been able to detect any security vulnerabilities that could have been used as an entry point for the cybercriminals.

GateHub isn’t the first custodial service platform to fall victim to hackers. As per previous BTCManager reports, the likes of Copay (owned by BitPay), Electrum, and Coinomi, to mention a few, have suffered varying degrees of malicious cyber intrusions leading to the theft of millions of dollars in cryptocurrencies.

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