The $3 Million XRP Theft: Here is the Story

A shocking $3 million XRP theft has once again revealed the darker side of the cryptocurrency world. It’s not only the threat of hackers, but also the growing network of fraudulent recovery firms that prey on victims. 

The case, uncovered by blockchain investigator ZachXBT, follows the story of a retired American investor whose XRP was stolen through a wallet vulnerability, only to face further exploitation from deceptive “recovery experts.”

This incident has shaken the crypto community and reignited discussions among institutional investors and individual users alike about security, self-custody, and the lack of regulation surrounding digital asset recovery services.

How the $3 Million XRP Theft Happened

The story began when Brandon LaRoque, a 54-year-old retiree, discovered that 1.2 million XRP, valued at around $2.88 million, had vanished from his Ellipal wallet. For LaRoque, this was not just a financial loss but a personal catastrophe. 

He had been accumulating XRP since 2017 as part of his retirement savings, trusting that his assets were safe in cold storage.

What he did not realize was that importing his seed phrase into the Ellipal mobile app had effectively turned his cold wallet into a hot wallet, exposing his funds to online risks. In a video shared online, LaRoque described the moment he found out his funds were gone:

“It was our whole retirement,” he said. “I’ve been accumulating XRP for the past eight years, and now I don’t know what we’re going to do.”

Read also: Dave Portnoy Eyes XRP: Should You Buy Now?

How the Funds Were Laundered

According to ZachXBT’s investigation, the attacker conducted over 120 cross-chain swaps to conceal the stolen funds. 

The stolen XRP was first moved through Ripple-to-Tron bridge transactions using a service known as Bridgers (formerly SWFT), and then consolidated on the Tron network.

Within three days, the stolen assets had passed through multiple accounts and ended up at over-the-counter (OTC) desks linked to Huione, a payment network that the U.S. Treasury recently sanctioned for facilitating billions of dollars in illicit transactions.

This laundering pattern demonstrates the ongoing challenge faced by global authorities. While blockchain transactions are traceable, cross-chain and cross-border laundering operations make enforcement extremely difficult. 

In many cases, the digital trail ends in jurisdictions where U.S. or European law enforcement has limited reach.

Read also: Ripple and the XRP ETF Race: Corporate Acquisitions and Market Momentum 2025

The Rise of Predatory Recovery Firms

Following the theft, LaRoque sought help, and that is when another layer of exploitation began. The crypto recovery industry, largely unregulated, has become a new trap for victims seeking to retrieve lost assets.

ZachXBT warned that over 95% of crypto recovery firms are predatory, offering expensive but ineffective services.

“Another lesson is that more than 95% of recovery companies charge large amounts for basic reports with few actionable insights,” ZachXBT said.

These firms often use search engine optimization (SEO) and social media targeting to reach victims. They promise to “track” or “recover” stolen funds but, in most cases, only deliver generic blockchain reports or advise victims to “contact the exchange.” 

Some even demand upfront payments or take personal information under the guise of verification.

The result is that many victims, already traumatized by theft, lose even more money to fraudulent recovery firms.

Read also: Crypto Flash Crash in Details on Crypto Market Condition Recently

The Broader Lesson: Self-Custody and Awareness

Beyond the technical details, the XRP theft has reopened discussions about the complexity of self-custody and the risks that come with it. 

While self-custody wallets promise independence from centralized exchanges, they also place full responsibility on users to secure their private keys and understand the distinctions between cold and hot storage.

In LaRoque’s case, importing his seed phrase into a mobile application blurred that line, a mistake that cost him nearly his entire savings. 

Experts argue that wallet manufacturers must do more to improve user education, ensuring that non-technical investors fully understand how these systems work.

The odds of recovering the stolen XRP are slim. Cross-border laundering and limited crypto enforcement capacity mean that once funds enter global networks like Huione, tracking them further becomes almost impossible.

However, the bigger warning, according to ZachXBT, is that the next wave of losses may not come from hackers themselves but from fraudulent firms pretending to help victims.

Read also: Bitcoin, Ethereum & XRP on Edge: Is a Deeper Price Correction Coming?

What Institutional Investors Can Learn

For firms and institutional investors, the case underscores the need for stricter internal controls and third-party verification of wallet configurations. It also highlights the importance of due diligence when dealing with new recovery services or custodians.

As more institutions enter the crypto market, these cases reveal why security education and regulatory clarity must evolve alongside adoption. Transparency in asset recovery, cross-chain monitoring, and anti-fraud measures could help prevent similar tragedies in the future.

Find other interesting articles on Bitrue blog! You can also directly buy selected assets on Bitrue by registering here! 

FAQ

Does XRP have a future?

Yes, XRP is predicted to have a future price increase. Based on a projected 5% annual change, the price of XRP is expected to reach $3.01 in 2030 and potentially $4.91 in 2040.

Can XRP reach $10?

Reaching $10 before 2027 is plausible but not highly probable. Achieving this price level depends heavily on continued liquidity growth; if that growth slows, the speculative demand for the crypto could decrease just when XRP needs it most.

Could XRP hit $1000?

No, $1,000 for XRP is highly unrealistic. For XRP to hit $1,000, its market capitalization would need to be nearly $60 trillion (or over $100 trillion if all tokens were in circulation). This value is far too high to be considered realistic.

Will XRP go over $100?

XRP reaching $100 is unlikely to happen within the next decade, but it is possible it could hit that price around 2038 or 2039. However, this surge would require massive, systemic changes in global finance and regulatory environments.