Revealing the 3 million USD XRP theft case: Pension funds have been completely emptied, beware of "predator" recovery companies in the encryption industry.

An Ellipal Wallet belonging to a retired American was recently stolen, resulting in the disappearance of his $3.05 million XRP savings. This incident not only reveals the risks of self-custody but also exposes the “predatory” fund recovery industry existing in the crypto sector: many companies charge desperate victims high fees while providing only hollow promises. Blockchain investigator ZachXBT traced the funds through over 120 cross-chain exchanges, eventually leading to the Huione network associated with billions in illegal transactions.

Pension Funds Plundered: Gaps in Wallet Security and User Education

This theft has dealt a devastating blow to the victim Brandon LaRoque. The stolen 1.2 million XRP (valued at 2.88 million dollars at the current exchange rate) is all the savings that this 54-year-old retiree has accumulated since 2017.

· Common misconception about transferring from cold wallet to hot wallet: LaRoque originally believed that the funds were securely stored in a cold wallet. However, he later learned that importing the mnemonic phrase into the Ellipal mobile application actually converted the cold wallet setup into a hot wallet.

· The victim's dilemma: “I have been accumulating XRP for eight years,” LaRoque said in a YouTube video recounting the theft process, “This is our entire retirement fund, I don't know what we should do.”

On-chain Tracking: Capital Flow into Money Laundering Networks Sanctioned by the US Treasury

Blockchain investigator ZachXBT's on-chain analysis reveals the hackers' complex money laundering path, directly linking this XRP theft case to a notorious crime network.

120 cross-chain exchanges and traces of the Huione network

· Money laundering path: The attacker made over 120 bridging transactions from Ripple to Tron, utilizing Bridgers (formerly SWFT) to exchange the stolen XRP, and ultimately concentrated the funds on the Tron Blockchain.

· OTC and Sanction Networks: In just three days, these assets disappeared into OTC trading desks associated with the Southeast Asian payment network Huione. The U.S. Treasury recently imposed sanctions on Huione due to allegations of laundering billions of dollars (involving fraud, “pig butchering,” human trafficking, and cybercrime).

Law Enforcement Challenges: Cross-Border Money Laundering Channels Are Difficult to Disrupt

This case highlights a key weakness in global law enforcement: even though the clues tracked on the Blockchain are open and transparent, cross-jurisdictional money laundering channels are still difficult to shut down. U.S. authorities stated that Huione has facilitated the transfer of over $15 billion in illegal funds.

Warning: The Emerging “Fund Recovery” Industry Exploiting Victims

When law enforcement agencies struggle to respond quickly, ZachXBT warns that a “fund recovery economy” has emerged, specifically exploiting the desperate emotions of victims.

False promises and high costs

· Predatory behavior: ZachXBT stated, “Another lesson is that over 95% of recovery companies are predators, charging high fees but only providing basic reports with almost no actionable insights.”

· Marketing Strategy: Many such companies lure victims through SEO and social media targeting, with the services offered often being superficial Blockchain reports or giving clients useless advice like “contact mainstream CEX.”

The tragedy of multi-stage crime

This type of secondary exploitation of victims has turned many high-value hacking attacks into multi-stage crimes: first the theft by hackers, followed by the deception of false recovery operators. These operators promise to recover funds that have actually already been completely drained.

Conclusion

The 3 million USD XRP theft case serves as a painful wake-up call, reminding us of the complexities of self-custody, the concealment of money laundering by criminal networks, and the urgency of user education. In the face of the dim hope of recovering funds, victims must also be wary of false “recovery companies” that claim to be able to help. Strengthening user education and global cross-jurisdictional law enforcement cooperation is the only long-term solution to combat such crimes.

Disclaimer: This article is for news information and does not constitute any investment advice. The encryption market is highly volatile, and investors should make decisions cautiously.