Home » Hackers Breach Gatehub As They Cart Away $9.5 Million From Several Cryptocurrency Wallets

Hackers Breach Gatehub As They Cart Away $9.5 Million From Several Cryptocurrency Wallets


Hackers are at it again, and this time, they’ve stolen 23.2 million XRP (Ripple coins), worth about $9.5 million US dollars, from the users of GateHub crypto wallet service.

The firm acknowledged the massive security breach in an initial statement displayed on their official website.

While the employees are still studying the unfortunate incident that led to user’s funds being stolen from GateHub wallets, the firm said they are relatively certain that the hacker or group of hackers manipulated its API to carry out the heinous attacks, even though they are not sure how it was carried out.

“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,” the crypto firm said.

“That, however, still doesn’t explain how the perpetrator was able to gain other required information needed to decrypt the secret keys.
“All access tokens were disabled on June 1st after which the suspicious API calls were stopped,” GateHub reportedly said.


A report released by XRP Forensics tried to help with the case. XRP Forensics are a group of XRP members working round the clock to thwart and counter scams purportedly carried out on the XRP Ledger. They included extra details about the heist, like the history of suspicious transactions and twelve of the XRP addresses which the hacker or group of hackers transferred the stolen funds to.

“As of writing this report, 2019-06-05 16:00 UTC, we gather that ~23,200,000 XRP has been stolen from 80-90 victims, of which ~13,100,000 XRP have already been laundered through exchanges and mixer services,” according to Thomas Silkjær. He is a member of the XRP Forensics team.

Silkjær also could not pin down the process which hackers used to steal the XRP from the GateHub accounts.

GateHub said it reported the theft to law enforcement and assured everyone that they would post an official statement after the completion of internal investigations.

This security breach is the second of its kind that was brought to the notice of the world today and of course, it would have a negative impact on the cryptocurrency community. Earlier, the Komodo Platform disclosed to shocked users that they hacked their own users to transfer funds from backdoor wallets before it fell into the hands of hackers who wouldn’t hesitate to steal the users’ money. The company in a statement said they would let users regain their funds.

Source: https://www.zdnet.com/article/hackers-steal-9-5-million-from-gatehub-cryptocurrency-wallets/

About the author

Jo Arazi

Jo Arazi

Jo is a seasoned writer and analyst of the cryptocurrency market with several years of experience writing for various blogs and websites worldwide. He has worked with several crypto startups and is a supporter of credible crypto projects worldwide.

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