$3 Million XRP Theft Reveals the Harmful Recovery Industry! What’s Up?

Jakarta, Pintu News – The recent theft of $3 million worth of Ripple (XRP) from a retiree’s Ellipal wallet in the US highlights the recovery industry that often capitalizes on victims of cybercrime.

The Ripple (XRP) Theft Incident and Its Impact

Brandon LaRoque, a 54-year-old retiree, discovered that 1.2 million Ripple (XRP) worth $2.88 million had gone missing from his Ellipal wallet. This happened earlier this month, with the missing amount being his life savings accumulated since 2017. This incident not only caused financial loss but also raised concerns about the security of digital assets.

Investigations conducted by ZachXBT showed that the perpetrators converted the stolen Ripple (XRP) through 120 Ripple-to-Tron bridge transactions, using the services of Bridgers (formerly SWFT), before finally consolidating the funds in the Tron network. This shows a security hole that cybercriminals can exploit.

Also Read: 5 Reasons Why Avalanche (AVAX) Price Exploded in Q4 & is in the Crypto Whale Spotlight!

Predatory Recovery Industry

According to ZachXBT, it is often difficult for law enforcement to respond quickly to cybercrime, resulting in a recovery economy that tends to capitalize on victims’ desperation. Many of these companies offer services to help recover lost assets, but it’s not uncommon for them to take advantage of the situation for personal gain.

The industry, which is supposed to help victims, often becomes predatory by promising unrealistic results and demanding upfront payments. Victims who are already devastated by the loss of their digital assets become easy targets for these unethical practices.

Self-Storage Confusion and Broader Risks

The Ellipal case also sparked a debate on the safety of self-storage. Victims experienced confusion between the use of Ellipal’s cold wallet and its hot wallet app, reflecting issues of unclear wallet design and user education gaps. This shows the importance of a deep understanding of the technology used to manage crypto assets.

This incident highlights the need for stricter security standards and better education for crypto wallet users. Without this, users can easily make potentially costly mistakes and increase the risk of losing valuable assets.

Conclusion

The Ripple (XRP) theft case is a harsh reminder of the risks involved in the crypto world. While technology provides many conveniences and benefits, user safety should always be a priority. Better education and stricter regulations may be the key to preventing similar incidents in the future.

Also Read: ChatGPT Prediction: XRP, DOGE & PEPE could hit an all-time high by the end of 2025!

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Reference

• BeInCrypto. 3 Million XRP Hack Recovery Firms Zachxbt. Accessed on October 20, 2025