GateHub Hacked- 23 Million Ripple Stolen By CyberCriminals

GateHub Hacked
GateHub Hacked

There are approx 23 Million of Ripple (XRP) Cryptocurrency coins have stolen by Cyber Criminals. 

Currently, it’s worth nearly to $10 Million USD

According to Statement by Enej Pungercar, Founder and CEO, GateHub,

“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.

Although we have not identified any action or omission by GateHub that may have facilitated or allowed this apparent theft to occur, we apologize deeply to all of our customers for this issue and pledge to get to the bottom of it.

We already sent out an email to all users that might be affected as a result of suspicious API calls with instructions on how to protect their funds.”

What you need to do?

If you have received an email from GateHub, please read it carefully and act accordingly. IMMEDIATELY transfer all of your existing balance from Ripple wallets to a hosted wallet. You can find instructions on how to do so here.
If you have not received an email from us, then we have no reason to believe your account was compromised.

Cyber Investigation is Ongoing?

While the investigation is still underway and GateHub can not post any official conclusions just yet here are a couple of findings so far.

API requests to the victim’s accounts were all authorized with a valid access token. There were no suspicious logins detected, nor there were any signs of brute forcing.

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.

Also Read – CryptoJacking- A Technique using By Hackers To Mine CryptoCurrency

How many wallets compromised?

At the moment company estimate that approximately 100 XRP Ledger wallets were compromised. So far it looks like all the victims had their XRP Ledger wallets hosted on GateHub, but they cannot yet rule out that some wallets were not.

To conclude the investigation as soon as possible, Gatehub is working closely with a professional IT forensics team to determine whether our system was compromised or not.

Thomas Silkjær in XRP Forensics, who were security reported to GateHub said,

“On June 1 we were made aware of a theft of 201,000 XRP (transaction F6E9E1385E11649A6C2F88723A821AF209B54030886539DCEF9DDD00E6446948) and immediately started 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.”

“The same day we made contact to Gatehub to make them aware of the potential security breach while continuing our independent investigation and contacting exchanges where the offender appeared to have laundered money.”

On further investigation, Thomas found several other accounts were compromised.

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