The Atomic Wallet hack, which affected both the Atomic Wallet and the XRP Ledger (XRPL), made headlines in the crypto community on June 3. Following the examination by XRP Forensics, it was discovered that relatively 22 million XRP were transferred from the XRPL to several blockchains.
Since then, the Forensics division of XRPL-based analytical resource explorer has been tracking the movement and providing vital insights into the hackers’ strategies.
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The hackers initially aggregated the cash into a central aggregation account using a multi-step method. They then tried other techniques to evade discovery, such as transferring the cash to new accounts and attempting transactions on multiple exchanges.
The laundering process was eventually streamlined, with funds transferred via the Orbit Chain bridge to the Klaytn blockchain. This enabled the conversion of XRP to KLAY, the Klaytn network’s native coin. KLAY was obtained and converted to Ethereum (ETH) before being transferred to the Avalanche blockchain.
Finally, the hackers converted the money to Bitcoin (BTC) and transferred it to the Bitcoin network. Surprisingly, the hackers were able to shift a massive 22.18 million XRP across blockchains in just five hours. Approximately 18 million XRP were sent through the Orbit Chain bridge.
According to XRP Forensics, nearly 14 million XRP were transferred across the bridge as of June 23, 9:49 AM (UTC), with only about 1010 XRP remaining when their investigations caught up with them. The XRPL “cleaning up” procedures were expected to be completed by the end of the day, as only roughly 4 million XRP remained.
While the research by XRP Forensics was thorough, the hack raised crucial issues about the possible benefits and risks of bridges on the XRPL, as well as the procedures that could prevent hackers from obtaining similar points of exit in the future.
Read Also: XRPL Labs Set To Add Quick Response (QR) Payments Feature on Xumm Wallet: Details
The hack of Atomic Wallet, as well as the subsequent exploitation of the XRPL, has highlighted the need for increased security measures to protect the cryptocurrency ecosystem. While the hackers’ efforts to conceal their identities and activities were commendable, blockchain’s openness and traceability proved vital in tracking down the stolen assets.
The open nature of the XRPL may make it vulnerable to similar attacks in the future, emphasizing the importance of prompt regulatory action from relevant authorities. One option is to impose stricter limitations on the use of bridges across blockchains, minimizing the likelihood of exploiting one system’s flaws by leveraging links between networks.
Nonetheless, the crypto community must work together to alleviate the damage caused by these exploitations and to avoid future attacks. Watchdog groups and financial regulators can uncover tendencies of criminal conduct in Bitcoin transactions and develop safer standards for blockchain technology as a whole by pooling their data.
To summarize, while tragic, this hack occurrence serves as a reminder of the significance of monitoring and accountability in the blockchain realm. Education and ethical behaviors will be key tools in creating a secure and sustainable future for Bitcoin and the blockchain technology that supports it as rules around cryptocurrencies continue to evolve.
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