The cryptocurrency wallet service GateHub has been hacked for nearly $10 million. This is at least according to a preliminary statement by the platform. Moreover, this hacking attack affects around 100 of GateHub’s XRP Ledger wallets.
The GateHub hack was revealed by community members
According to GateHub’s preliminary statement, the site was notified by community members and customers regarding irregularities in the XRP Ledger wallets.
Although the wallet platform was unable to identify any “action or omission by GateHub that may have facilitated or allowed this apparent theft to occur”, the site is nonetheless already issuing an apology to all affected users. Moreover, GateHub is pledging to “get to the bottom of” the hack.
The company’s investigation reportedly discovered that a number of API calls had been coming from a small number of IP addresses. As such, it is suspected that this might be how the attack was carried out. Specifically, this could indicate how the hackers got access to encrypted keys. Nevertheless, HateHub has yet to release any official report of the hack.
However, community member Thomas Silkjær – who warned GateHub of the security breach – recently published a report on the breach. In it, he noted that GateHub began to investigate the issue around June 1st.
“On June 1 we were made aware of a theft of 201,000 XRP […] and immediately started [an] investigation. It turned out that the account robbed was managed through Gatehub.net, and that the offending account (r9do2Ar8k64NxgLD6oJoywaxQhUS57Ck8k) had stolen substantial amounts from several other XRP accounts, likely to be or have been managed through Gatehub.net.”
GateHub will not release any official conclusion before the investigation is over
Furthermore, Silkjær also suggests that around 80 to 90 victims have been affected so far. Approximately 23,200,000 XRP is said to have been stolen, translating to around $9.5 millions worth of XRP. Additionally, circa 13,100,000 XRP – or $5.37 million – have reportedly already been laundered by the attackers.
As such, this GateHub hack is a major security breach event. GateHub is still conducting an investigation, which prevents it from releasing any official conclusions. However, the fact that a majority of the funds have already been laundered suggests they may prove hard ever to retrieve.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.