XRP Ledger Gateway, GateHub Hack Update: The Wait Continues for Stolen Fund Compensation


On Friday, July 19, European-based gateway for the XRP ledger, GateHub released a statement that shared the details regarding a hack that took place in June 2019 along with its ongoing investigation.

As per the initial investigation, the hacker was able to access dozens of XRP Ledger wallets in which traders’ crypto assets were compromised. This was supposedly done by accessing a database, which housed traders’ valid access tokens as well as a number of IP addresses. Upon realization, the latter were all disabled.

With a total of 18,473 accounts affected by the hack, traders were left advised of the ongoing investigation, at least until more recent news has sparked. It has been revealed that the main targets in the hack include information such as “email addresses, hashed passwords, hashed recovery keys, encrypted XRP ledger wallet secret keys”, and first and last names (if applicable).

Interestingly, GateHub has shared what they will be doing forward in order to safeguard one’s wallet from future hacks. Namely, the team is currently working on, “generating new encryption keys and re-encrypting all sensitive information such as XRP ledger wallets’ secret keys on all accounts upon next sign-in.”

Unfortunately, it seems like the final investigation concludes that the wait will have to continue for some more time. Here’s an extract:

“Once these legal procedures are completed, we will know the exact amount of funds that our customers will be able to retrieve. Until then, we kindly ask our customers to remain patient and report any suspected losses to their local law enforcement agencies.”

News outlet, AMB Crypto, also reported on this matter, and was quick to catch a small action made on GateHub’s part to their official website. More specifically, the news outlet noticed that the website once said, “100% backed and secured,” and now said statement no longer exists.

News regarding the update was also posted on Twitter, to which many traders have expressed loss of hope and disappointment. Here’s a couple of expressed sentiments:

@Alisons23933286:

“Not good enough-full compensation to all the victims.”

@XRPCaptain

“WOW – Reading the statement has given me absolute ZERO confidence that all customers whom lost money will be reimbursed. A very generic “we will look after you” reply. It made me very cold reading through it. @GateHub, take note of the most recent hack! See the difference?!?!”

@CuckooRandle

“Glad I removed everything immediately after hearing about the hack. Detail your plans to offer compensation or lose all your customers.”

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