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<p>Blockchain investigator ZachXBT uncovered a $3 million XRP theft linked to a sophisticated phishing scheme, affecting a US-based cryptocurrency holder's Ellipal wallet, with funds laundered via a Cambodia-based financial group.</p>
<p>The incident raises concerns over wallet security practices, impacting XRP market dynamics and highlighting risks of recovery phrase misuse.</p>
<h2 id="zachxbt-uncovers-3-million-xrp-phishing-theft">ZachXBT Uncovers $3 Million XRP Phishing Theft</h2>
<p>ZachXBT mapped and publicly exposed the route of the stolen funds. <strong>Ellipal wallet</strong> provider stated that their offline products remain secure. The victim mistakenly imported their recovery phrase, exposing funds to the phishing attack. Here's what ZachXBT had to say:</p>
<blockquote>
 "The victim thought they were using an Ellipal cold wallet, but had actually imported their recovery phrase into a hot wallet, which exposed the funds online." - <a href="https://finbold.com/u-s-crypto-holder-loses-3-million-in-xrp-after-wallet-compromise/" rel="noopener noreferrer nofollow">Source</a>
</blockquote>
<blockquote class="twitter-tweet"><a href="https://twitter.com/zachxbt/status/1979899767212699910" rel="noopener noreferrer nofollow"></a>
</blockquote>
<h3 id="3-million-xrp-theft-spurs-exchange-alerts">$3 Million XRP Theft Spurs Exchange Alerts</h3>
<p>The theft involved 1.2 million XRP tokens, converted to other assets through cross-chain swaps. <a href="https://www.blockworks.co/news/binance-freezes-stolen-xrp" rel="noopener noreferrer nofollow">Binance's response</a> was swift, freezing stolen XRP following theft reports. Community warnings emerged, urging careful management of <strong>recovery phrases</strong>. Exchange responses were swift, yet the stolen funds largely bypassed major channels.</p>
<p>Potential financial and <strong>regulatory concerns</strong> arise as the <strong>funds moved</strong> through sanctioned entities like Huione. <a href="https://www.fincen.gov/news/news-releases/fincen-issues-final-rule-severing-huione-group-us-financial-system?utm_source=chatgpt.com" rel="noopener noreferrer nofollow">FinCEN's final rule</a> highlights implications for US operations. Historical data suggests similar events can result in short-term price declines for <strong>affected tokens</strong>. Exchanges may face challenges recovering assets.</p>
<h3 id="historical-hacks-highlight-xrp-s-vulnerability">Historical Hacks Highlight XRP's Vulnerability</h3>
<p>Similar past events, including a significant 2025 hack of <a href="https://www.blockworks.co/news/ripple-co-founder-hack" rel="noopener noreferrer nofollow">Chris Larsen's wallets</a>, highlight recurrent vulnerabilities. <strong>XRP</strong> remains a frequent target due to its liquidity and network. <strong>Cross-chain swaps</strong> complicate recovery and regulation efforts.</p>
<p>Experts from Kanalcoin suggest future <strong>vigilance</strong> and improved wallet security practices could mitigate such occurrences. Historical trends indicate complex laundering <strong>challenges</strong>, with funds passing through multiple chains, impeding regulatory action.</p>
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    <td><em><strong>Disclaimer</strong>: This <a href="https://www.kanalcoin.com/" target="_blank" rel="noopener noreferrer nofollow"><strong>website</strong></a> provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing.</em></td>
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</figure> <a href="https://www.kanalcoin.com/xrp-3-million-theft-phishing-scheme/" rel="noopener noreferrer nofollow">Read original article on kanalcoin.com</a>

XRP $3 Million Theft Linked to Phishing Operation

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