Crypto Exchange Loses Over $6M XRP In Major Exploit

• Coins.ph, a Philippines-based crypto exchange, rumored to have lost $6 million in XRP through an exploit.
• On October 17, an alleged hack occurred, with no official statement from Coins.ph.
• The Coins.ph incident exemplifies the growing trend of hacks and exploits in the cryptocurrency industry. 

Cryptocurrency exchange Coins.ph, based in the Philippines, is facing rumors of a significant loss. It’s said to have lost a substantial $6 million worth of XRP due to an exploit.

The incident is believed to have occurred on October 17, but Coins.ph has not issued an official statement regarding the alleged attack.

Blockchain Clues and the Alleged Hacker’s Moves

Evidence from the blockchain, which records all cryptocurrency transactions, suggests that the exploit may have indeed occurred. The blockchain explorer XRP scan shows that 12.2 million XRP were moved from the exchange to different destinations.

The transactions are notable because they happened simultaneously, with 13 separate outflows. Each transaction moved precisely 999,999.999 XRP to the same wallet, except for the last batch, which seems to be pending.

Additionally, a further 200,000.999999 XRP left the exchange during the same 32-minute timeframe. These transactions add up to a total of over 12.2 million XRP, which is a significant amount.

After acquiring these funds, the alleged hacker transferred them to various locations, including other crypto exchanges like ChangeNOW, and WhiteBIT. The Block, a reputable source, reported that WhiteBIT confirmed the incident.

The exchange revealed that they blocked 445,000 XRP when Coins.ph requested they flag down the address linked to the stolen tokens. WhiteBIT also contacted blockchain analytics platforms Cristal and Chainalysis, asking them to identify addresses associated with the stolen XRP.

Rising Concerns For XRP and the Crypto Industry

This incident is a concerning trend in the cryptocurrency industry, with increasing hacks and exploits. In 2022, the industry saw losses exceeding $2 billion due to various cyberattacks. Another cryptocurrency exchange, Huobi, lost nearly $8 million to these malicious actors in September.

Interestingly, the hacking attempt trend has also been on the rise. South Korea’s Upbit cryptocurrency exchange encountered a staggering 159,000 hacking attempts during the first half of 2023.

This number is twice the number of hacking attempts the exchange faced in the same period in 2022, highlighting the growing risk to digital asset platforms.

Notably, decentralized finance (DeFi) platforms have not escaped these attacks either. Several DeFi exchanges and platforms fell victim to hacks and exploits in the past year, resulting in losses exceeding $665 million by June.

The alleged hack on Coins.ph, resulting in a loss of $6 million in XRP, is a concerning incident highlighting the ongoing security challenges in the cryptocurrency industry.

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While on-chain data suggests the exploit may have occurred, official confirmation from the exchange is awaited. The cryptocurrency sector as a whole continues to grapple with the rising threat of cyberattacks, with both centralized exchanges and DeFi platforms facing significant risks.

It serves as a reminder that security remains a paramount concern for investors and industry stakeholders in this rapidly evolving digital landscape.