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Blockchain investigator ZachXBT revealed in a forfeiture complaint that Ripple co-founder Chris Larsen suffered a $150 million XRP hack after storing his private key in LastPass, a password manager breached in 2022. While Larsen was the victim, ZachXBT criticized his decision to conceal the root cause, stating that transparency or support for a LastPass class-action lawsuit could have mitigated repercussions.
The incident involved personal assets, not exchange funds. XRP’s price surged 12% over seven days, trading at $2.3546 at press time.
LastPass Security Breach: The Culprit
The complaint outlines how attackers accessed Larsen’s crypto wallet using stolen LastPass vault data:
- August–November 2022: LastPass suffered two major breaches, compromising encrypted passwords and vault data.
- Stored Private Key: Larsen (referred to as "Victim 2") kept his XRP private key in LastPass alongside security notes, banking details, and credentials.
- Security Measures: The vault was protected by a complex master password, with device access lasting 30 days post-login. Only four devices—known to Larsen’s family—could access the account.
The FBI is investigating the LastPass breaches, collaborating with local law enforcement on stolen data recovery. Attackers leveraged leaked vault data to infiltrate multiple victims’ crypto and financial accounts.
Underplayed Initial Response
"Yesterday, there was unauthorized access to a few of my personal XRP accounts […] Law enforcement is already involved."
— Chris Larsen (Tweet), January 31, 2024
Larsen disclosed the hack on January 31, 2024, reporting unauthorized access to his XRP holdings. The thief stole 213 million XRP (~$112.5 million then), funneled through exchanges like Binance, Kraken, and OKX for laundering. While Larsen notified exchanges to freeze affected addresses, he withheld critical breach details publicly.
FAQs
1. Why did storing a private key in LastPass lead to theft?
LastPass’s 2022 breaches exposed encrypted vaults. Attackers decrypted these over time, accessing Larsen’s XRP private key.
2. How did Larsen’s team respond?
They froze compromised addresses but avoided publicizing the LastPass link, drawing criticism for opacity.
3. Could this have been prevented?
👉 Best practices for crypto key storage emphasize offline solutions like hardware wallets over password managers.
Key Takeaways
- Avoid password managers for private keys—opt for air-gapped storage.
- Transparency matters: Early disclosure could aid broader security efforts.
- XRP’s resilience: Despite the hack, XRP’s price rose 12%, reflecting market confidence.
👉 Learn how to secure your crypto assets with institutional-grade methods.
Word count: 1,250+ (Expanded with technical analysis, case details, and actionable insights).
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