XRP Hack Drains $3M via Cross-Chain Bridges and Huione OTC

Published: 2025-10-20 15:55:07 |

An XRP hack saw a US retiree lose 1.2 million XRP (over $3 million) from a misconfigured Ellipal wallet. On-chain investigator ZachXBT traced the stolen funds across more than 120 rapid cross-chain swaps, converting XRP into TRX via multiple bridges. The attacker then laundered the proceeds through Huione-linked OTC desks in Southeast Asia. This XRP hack underscores growing cross-chain laundering networks abusing wallet vulnerabilities and loosely regulated OTC venues. Earlier allegations by Elliptic led Cambodian authorities to block dozens of Huione-related sites. A TRM Labs report indicates over $2 billion was stolen in 2025 through similar wallet breaches and cross-chain cashouts. Traders should double-check wallet configurations, tighten KYC, and monitor bridge transactions to guard against future XRP thefts and related security risks.

Bearish

This major XRP hack erodes confidence in bridging protocols and OTC laundering channels. The theft of over $3 million via cross-chain swaps highlights persistent vulnerabilities in Ellipal and similar wallets. Traders are likely to reduce XRP exposure in the short term amid heightened security concerns and regulatory scrutiny. Long-term impacts could include slower adoption of certain bridge services and tighter compliance, further pressuring XRP liquidity and market sentiment.