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- Stolen $3 million in XRP traced through illicit Huione network.
- ZachXBT reveals stolen XRP laundered using Southeast Asian OTC links.
- Investor loses eight years of XRP savings in wallet hack.
According to blockchain analyst ZachXBT, $3 million worth of stolen XRP has been laundered through OTC services tied to Huione Guarantee. The network is a central hub in Southeast Asia known for handling illicit funds linked to scams and trafficking. Before the laundering, the hackers moved all the stolen assets into a single Tron address to consolidate control.
In a recent video on YouTube, American investor Brandon LaRoque, the victim of the funds lost, spoke of his experience. He said that he had been accumulating XRP for over eight years as his retirement plan. Unfortunately, all the 1.2 million tokens were stolen by the hackers, and he was devastated and did not know what to do next.
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Ellipal Wallet Controversy
LaRocque thought that his Ellipal wallet was totally out of range. Nevertheless, the equipment was online so that the hacker could hack it. This misconception was the fatal gap that revealed his possessions to theft.
Ellipal reaffirmed that it was assisting the victim and investigating the case. The firm said that the loss occurred due to the import of the seed phrase into its application. It was also advising users to learn about the distinction between custodial and non-custodial wallets before putting digital assets in them.
ZachXBT emphasized that crypto companies need to improve regarding clarifying their security models. This is because of the confusion of the safety levels of various wallets that many investors have because of mixed product designs and unclear marketing.
Low Chances of Recovery
The blockchain researcher mentioned that the likelihood of restoration of the stolen XRP is extremely low. The victims in the United States find it very difficult to receive relevant assistance from law enforcement. He recommended that the affected users should seek the services of reliable professionals in the private sector. He also cautioned against unreal recovery services that take advantage of the desperation of the victims.
This case raises the increasing risks within the crypto industry because hackers use user errors. It further demonstrates how money is easily lost when it goes through intricate networks such as Huione Guarantee.
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