- Ripple co-founder Chris Larsen lost $150 million worth of XRP due to compromised private keys stored in LastPass, a password manager that suffered breaches in 2022, enabling hackers to steal 283 million XRP tokens.
- This incident highlights the risks of online password managers for crypto security and underscores the need for safer storage methods like cold wallets and multi-signature authentication.
The cryptocurrency world was rocked by a major security breach when Ripple co-founder Chris Larsen lost approximately $150 million worth of XRP due to compromised private keys. The incident, linked to the 2022 LastPass security breach, raises urgent concerns about private key management and password manager vulnerabilities.
The Breach: How It Happened
Blockchain investigator ZachXBT revealed that the massive theft resulted from Larsen storing his private keys in LastPass, a password manager that suffered two significant data breaches in 2022. According to a recent U.S. court filing, hackers accessed an online password manager and extracted sensitive information, allowing them to steal 283 million XRP tokens in January 2024.
Larsen initially disclosed the security breach on January 31, confirming that unauthorized actors had accessed his personal XRP accounts. However, at the time, he did not reveal the cause of the attack. The recent court documents and ZachXBT’s findings confirm that LastPass played a key role in enabling the hackers.
Ripple’s Response and Market Impact
The stolen XRP was initially valued at $150 million but has since surged to an estimated worth of $708 million due to XRP’s price appreciation. Despite the massive theft, Larsen clarified that Ripple’s corporate holdings were unaffected, preventing broader damage to the company’s financial standing.
Ripple has yet to issue an official statement regarding the latest revelations, but the incident has reignited concerns over the security of high-value crypto assets. The breach also raises questions about the reliance on password managers for securing digital wealth.
A Larger Pattern of Crypto Thefts
Larsen’s case is not an isolated incident. Reports suggest that hackers identified as the “LastPass threat actor” have stolen over $5.36 million in various cryptocurrencies from more than 40 different wallets. Notable incidents linked to the LastPass breach include a $6.2 million theft in February 2024 and a $4.4 million heist in October 2023.
The LastPass security breach exposed customer keys, API tokens, and multi-factor authentication (MFA) seeds, making it a goldmine for cybercriminals targeting crypto assets. This breach highlights the risks associated with storing private keys in online password managers, even those considered highly secure.
Lessons for Crypto Investors
This incident serves as a stark reminder that even seemingly secure storage methods can be compromised. Crypto investors, especially those managing high-value wallets, should consider alternative security measures such as:
- Cold storage: Storing private keys offline to minimize exposure to hacks.
- Hardware wallets: Using dedicated devices that store private keys securely.
- Multi-signature wallets: Requiring multiple approvals for transactions to enhance security.
The XRP hack underscores the importance of re-evaluating cybersecurity strategies in the digital asset space. As hackers grow more sophisticated, investors must stay ahead by implementing stronger security protocols to protect their holdings.
