Cryptocurrency Theft Incident
In a shocking incident of cryptocurrency theft, prominent blockchain investigator ZachXBT reported that a staggering $3 million in XRP belonging to Brandon LaRoque, a U.S. investor, has been funneled through over-the-counter (OTC) services linked to Huione Guarantee. This notorious marketplace based in Southeast Asia has gained notoriety for facilitating money laundering activities, often associated with trafficking and other criminal enterprises. Prior to this laundering, LaRoque’s funds were consolidated into a singular Tron wallet address.
LaRoque’s Heartbreaking Experience
LaRoque, who had been accumulating XRP for nearly eight years, recently shared the heartbreaking details of his ordeal in a YouTube video. In this clip, the investor revealed that he tragically lost all 1.2 million XRP tokens due to a cyber attack. He had believed he was securely storing his cryptocurrency in an Ellipal wallet, which he thought functioned as a cold wallet. Unfortunately, it was revealed that the device was connected to the internet, exposing it to significant security risks.
“I thought I did all the things right,” LaRoque expressed.
After retiring with his wife, they had planned to relocate to Las Vegas and purchase a home, but the loss has forced them to reconsider their future financial plans, as he stated,
“I guess we’re going to go back to work.”
Response from Ellipal and Industry Concerns
In response to the incident, Ellipal acknowledged that they are making every effort to assist LaRoque and clarified that the breach occurred because the seed phrase was imported into the application. ZachXBT emphasized the critical need for the crypto industry to improve its differentiation between custodial and non-custodial products to prevent further confusion and losses.
Challenges in Recovery
ZachXBT remains skeptical about LaRoque’s chances of recovering his stolen assets, citing the challenges that victims of cryptocurrency theft face in navigating law enforcement in the U.S. He recommends that victims reach out to knowledgeable private sector experts quickly, while also cautioning them against falling prey to unscrupulous recovery companies.
