U.S. Investor Loses $3 Million in XRP Hack
A U.S. crypto investor lost $3.05 million in XRP after their Ellipal hardware wallet was hacked. The thief stole 1.2 million XRP tokens. The stolen funds moved through Bridgers and were laundered using over-the-counter (OTC) channels linked to Huione. Huione is a Southeast Asian platform recently sanctioned by U.S. authorities for fraud and money laundering.
Tracing the Stolen XRP
The theft became public after a viral YouTube video. The victim did not share the wallet address, but blockchain records identified it as r3cf5mgj5qEcj9n4Th28Es7NVRnXGJjkzc. The wallet was likely compromised due to user error, though details remain unclear.
On October 12, 2025, the attacker made over 120 Ripple-to-Tron transactions via Bridgers. These transactions appeared to involve Binance, as Bridgers uses Binance for liquidity. By the same day, the stolen XRP was consolidated into a Tron address: TGF3hP5GeUPKaRJeWKpvF2PVVCMrfe2bYw. By October 15, the funds were fully laundered through OTC channels connected to Huione.
Huione’s Involvement in Money Laundering
Huione has been linked to laundering billions in illicit funds. These include proceeds from scams, human trafficking, and hacks across Southeast Asia. Recently, U.S. authorities imposed new sanctions on Huione after a $15 billion seizure tied to the Prince Group. This highlights Huione’s role in large-scale financial crime.
Security Lessons for Crypto Users
This case highlights a common risk: confusing custodial wallets with non-custodial ones. The victim believed their Ellipal wallet was cold storage, but it functioned as a hot wallet. Similar errors occur when funds are sent to compromised accounts via impersonation or social engineering.
Recovering stolen crypto is difficult. U.S. law enforcement has limited resources for large crypto thefts. Civil court actions are costly and often ineffective. Many recovery services charge high fees without guarantees. Reporting thefts immediately is crucial to improve recovery chances.
Low Chances of Recovery
Due to delayed reporting, the victim faces slim odds of recovering their XRP. Experts advise victims to report thefts promptly and publicly flag suspicious addresses to warn the community.
Unlike Bitcoin and Ethereum, Ripple lacks strong victim support systems. Quick reporting and immediate action are essential when theft occurs.
This incident shows that crypto security depends not only on technology but also on wallet management, timely reporting, and careful transfers when handling large crypto amounts.
