Brandon LaRoque, a retired individual, recently disclosed that he lost his entire cryptocurrency savings, exceeding 1.2 million XRP, due to a hacking incident affecting his Ellipal cold wallet. The value of this loss surpasses $3 million based on current market prices.
LaRoque, who has been involved in cryptocurrency since 2017, shared his distressing experience in a YouTube video. He conveyed his profound shock and sadness at the sudden disappearance of his life savings.
Details of the Breach
The security breach occurred on October 12. LaRoque discovered the theft four days later when he accessed his wallet. The hacker initiated the attack with two small transactions, each for 10 XRP, before proceeding to move approximately 1.29 million XRP to a new wallet.
LaRoque explained that the stolen funds were subsequently distributed among around 30 different wallets. To obscure the trail, the hacker employed a method of transferring the funds to between 500 and 900 wallets.
Reporting and Authorities
Following the incident, LaRoque reported the theft to the Internet Crime Complaint Center (IC3) and contacted local law enforcement. He expressed frustration when local authorities stated they were unable to address crimes related to cryptocurrency.
Impact on Retirement Plans
This significant financial loss has had a considerable impact on LaRoque's retirement plans. He and his wife had been preparing to relocate to Las Vegas and purchase a home. The loss now raises concerns that they may need to return to work to recover their financial stability.
Investigator's Findings
ZachXBT, a prominent blockchain investigator, has connected the theft to a money laundering operation based in Southeast Asia. His investigation revealed that the hacker utilized bridging services to execute over 120 transactions from the Ripple network to the Tron network.
The stolen XRP was reportedly laundered through over-the-counter (OTC) services associated with Huione, an illicit marketplace that has recently been subjected to sanctions by the U.S. government.
ZachXBT suggested that LaRoque might have inadvertently used his Ellipal cold wallet in a manner similar to a hot wallet, which could have led to the compromise. He also indicated that the likelihood of recovering the stolen funds is low, noting that over 95% of recovery companies are perceived as exploitative.
Ellipal's Response
In the aftermath of the incident, Ellipal has stated that they are in direct communication with LaRoque and are committed to providing their assistance in resolving the situation.