XRP Investor Says $3M in XRP Was Stolen; Cold Wallet Maker Says Seed Import Made Wallet Hot

Why It Matters

The episode raises fresh questions about user practices and custody risks for hardware‑wallet users and underscores challenges for exchanges, investigators and victims when funds move through bridges and OTC markets.

Summary

A U.S. retiree says more than $3 million worth of XRP (about 1.21 million tokens) was stolen after his Ellipal hardware‑wallet seed was imported into the company’s mobile app, which Ellipal says would store private keys on the device and convert a cold wallet into a hot one. On‑chain investigator ZackXBT traced an Oct. 12 sweep and subsequent swaps across Tron and OTC routes, suggesting rapid cross‑chain laundering that will make recovery unlikely. The episode raises fresh questions about user practices and custody risks for hardware‑wallet users and underscores challenges for exchanges, investigators and victims when funds move through bridges and OTC markets.