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Hackers Steal almost $10 Million in GateHub Breach

A security breach in GateHub’s system saw hackers compromising almost 100 XRP Ledger wallets on the crypto wallet’s platform. The hack was revealed in a preliminary statement recently released by GateHub.

100 XRP

In its statement, the company admitted that several of its clients and members notified them about funds that were missing from their wallets. GateHub estimated that the hackers were able to weaken about 100 XRP Ledger wallets.

GateHub has already started an investigation on the breach, although it didn’t initially disclose any criminal activities on its platform. Their probe has so far revealed an increased API calls originating from several IP addresses. This was probably how the hackers managed to access encrypted secret keys.

Thomas Silkjaer on the Issue

Thomas Silkjaer, a GateHub community member and one of those who raised the alarm about the breach, made a report on the incident. He said the community was made aware that 201,000 XRP was stolen and an investigation has commenced. He also added that it was later revealed that the robbed account was managed via GateHub.net and the account that stole from several XRP wallets was likely to have been managed through the platform as well.

Silkjaer also shared that an estimated 23,200,000 XRP, or about $9.5 million, have been stolen from between 80 to 90 users. About 13,100,000 XRP or $5.37 million is said to have been laundered via mixer services and exchanges.

Investigation Still Ongoing

Meanwhile, GateHub has stated that the company is still conducting an investigation and they cannot share their conclusions yet.

It has been previously reported that 64% of ransomware cash-out methods uses crypto exchanges to launder funds. Among the analyzed cash-out strategies, 12% used mixing services while 6% engaged peer-to-peer networks.

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