GateHub Security Breach Hack Of 201,000 XRP Worth 23 Million Story Starts To Circulate
Gatehub Hack Sees 23 Million XRP Loss
Among the many benefits of cryptocurrency is that it is seamless in nature and can easily be moved from one place to another without as many restrictions compared to fiat currency. However, this also means in some cases, a large amount of it can be stolen at once if there is a security breach of some sort.
This seems to be the case that Gatehub has suffered an unfortunate hack that has lost users 23 million XRP tokens at least according to Thomas Silkjær, the creative director at 2K/DENMARK, who outlined the potential security breach in a Medium post. According to the post, on June 1, 2019, transactions of approximately 201,000 XRP was sent between two wallets which alerted of the potential security breach.
“It turned out that the account robbed was managed through Gatehub.net, and that the offending account (r9do2Ar8k64NxgLD6oJoywaxQhUS57Ck8k) had stolen substantial amounts from several other XRP accounts, likely to be or have been managed through Gatehub.net,” the post said.
The activity was not limited to only these two accounts as there are a total of 12 suspected accounts that were mentioned which may be connected to the loss of funds with the first victim losing 1,0000 XRP in a transaction that took place on May 30, 2018.
In all, it is believed that over 23 million XRP has been stolen by the criminals and most of these forms have unfortunately already been laundered through various crypto exchanges and crypto mixing services, meaning it will be harder if not impossible to find the perpetrators.
It was also mentioned that there isn't any conclusive evidence that points towards the center of the attack as the attack could have taken place in a number of ways such as phishing, account hacks and so on. The XRP community has since warned users to avoid Gatehub temporarily and protect their privacy while the issue is being looked into.
2K/DENMARK has since criticized Gatehub for not doing enough to protect users and has also urged them to properly look into the matter and come up with a possible solution.
“This one is starting to look bad ☹️@GateHub please be transparent as possible with your investigations and reporting, the situation is tragic but this can be greatly exacerbated if there isn't clarity on your end!” they tweeted.
Gatehub has given a response and has stated that there was a security breach and that they're not sure if it was caused by any action on their part or any error that they allowed occurring. The response made mention of a particularly high number of API calls coming from a small number of IP addresses which might explain how the perpetrators of the crime were able to gain access to encrypted keys. While this might be the beginning of the investigation, it does not explain how they gained access to the other materials that would have allowed them to hack into the system and steal the funds.
It is hoped that the perpetrators of this crime can be caught in due time and that customers might be able to receive their funds back and hopefully, this will shed light on the need for better security and privacy measures to be taken by both wallet providers such as Gatehub and the users of the wallets themselves.