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XRP XRP Healthcare releases security breach report: A flaw caused nearly 4,000 wallets to be stolen three years ago
XRP Healthcare, a medical platform built on XRP Ledger, released a complete report on last week's attack on September 8. The XRP Healthcare development team pointed out that a wallet generation flaw introduced on June 13, 2023 significantly reduced the effective key space, making it computationally possible to reconstruct private keys offline.
Simply put, this three-year-old vulnerability exposed XRP Healthcare wallets to security risks, ultimately causing 4,011 wallets to be cleared on September 3. Hackers stole approximately $450,000 worth of crypto assets.
The development team also warned that all wallets generated by the application (not limited to the 4,011 cleared wallets) should be considered compromised (compromised/unsafe). The rest of the wallets were spared simply because they had no funds in them. Otherwise, they will remain exposed and any future funds deposited in them will be stolen.
The XRP Healthcare development team warned: "As of the writing of this report, this flaw has not been fixed, its derivation process is deterministic, and the algorithm is publicly readable."
Incident timeline and response measures
The team initially admitted the attack on the X platform on September 4, refuting the claim of "rug pull" and confirming that XRPH, XRPHAI and other assets were stolen from damaged XRPH Wallets. The team also urged users not to use the wallet until further notice.
On September 5, the team said it had submitted a formal report to law enforcement and was working with other encryption platforms to freeze stolen assets.
On September 6, XRP Healthcare disclosed that the stolen funds had been tracked throughout and that approximately 445,198 DAIs were still stuck in an Ethereum address. The team also asked users to submit loss reports on Etherscan.
On-chain data analysis
According to data from the on-chain analysis platform xrpl.to, the 4,011 compromised XRP Healthcare wallets lost a total of 267,664 XRPs and 23.2 million XRPH tokens.
Relevant data shows that these assets were transferred to a single address within three hours and then converted into stablecoins on the Ethereum network. Currently, approximately 445,198 DAIs are still stranded in the Ethereum address without further movement.
