XRP Healthcare Reports Wallet Flaw Led to 4,011 Wallet Theft

XRP Healthcare released a full incident report on September 8, saying a wallet-generation flaw introduced on June 13, 2023, sharply reduced the effective key space and made offline private-key reconstruction computationally feasible. According to Foresight News, the issue led to the theft of 4,011 wallets on September 3, with losses of about $450,000 in crypto assets. The report said all wallets generated by the application, not only the 4,011 stolen wallets, should be treated as compromised. It added that the remaining wallets were not affected only because they did not hold funds at the time, and any future deposits would still face theft risk. The team said the vulnerability had not been fixed as of the report and that the key-derivation algorithm was deterministic and publicly readable. The team previously acknowledged the incident on September 4 and denied rug pull allegations. On September 5, it filed a formal report with law enforcement and worked with other crypto platforms to freeze stolen assets. On September 6, it said it had completed tracing the funds and that about 445,198 DAI remained in an Ethereum address.