The Seizure of 3 Million in Crypto: A Ripple Effect of the 2022 LastPass Breach

In a significant development, U.S. authorities have seized over $23 million in cryptocurrency tied to the theft of $150 million from a Ripple crypto wallet in January 2024. The hacking incident has drawn attention not only because of the size of the theft, but also due to the alleged link between the attack and the 2022 LastPass breach. Investigators have traced the stolen assets to various cryptocurrency exchanges, signaling the complexity of the theft and the advanced methods used by cybercriminals.

the Event

In January 2024, hackers stole a massive sum of $150 million from a Ripple crypto wallet, which was owned by Ripple’s co-founder Chris Larsen. The U.S. authorities soon discovered that a substantial portion of the stolen cryptocurrency, amounting to $23,604,815.09, had been moved across several cryptocurrency exchanges, including Kraken, OKX, and others between June 2024 and February 2025. A U.S. Justice Department complaint revealed that the stolen private keys, which were essential to access the wallet, were likely extracted from a password vault compromised during the 2022 LastPass data breach. Investigators believe that no malware was involved in the attack, suggesting that the breach was solely due to the theft of data from a compromised password manager.

The stolen data, including passwords and private keys from LastPass users, was reportedly used to access sensitive accounts and steal cryptocurrencies. The breach was part of a larger trend of cryptocurrency thefts linked to the 2022 LastPass hack. The stolen funds were subsequently laundered through various exchanges, making it difficult for authorities to trace. The investigative findings led U.S. Secret Service agents to conclude that multiple actors were involved in the theft, all of whom may have been connected to the LastPass breach.

What Undercode Says:

The details surrounding the $150 million theft from Chris Larsen’s Ripple wallet are both alarming and revealing. The key takeaway here is that cybercriminals continue to exploit vulnerabilities in password managers and other tools that individuals and companies rely on for securing their data. In the case of LastPass, the breach occurred when hackers were able to steal both proprietary data and vault information from users. This data, including encrypted private keys, was crucial for accessing the cryptocurrency wallet of Larsen, which had remained secure until the password vault was compromised.

The attack serves as a clear reminder that a well-maintained password manager, while essential for securing sensitive data, is only as secure as the system it runs on. The hackers who targeted LastPass were able to decrypt and utilize this stolen data to launch sophisticated attacks on cryptocurrency accounts. The use of multiple cryptocurrency exchanges to launder the stolen funds indicates the increasing sophistication of these criminal operations. It’s likely that the attackers were not acting alone but were part of a well-coordinated group capable of evading law enforcement for months.

It’s important to note that the stolen cryptocurrency

Furthermore, this event highlights a troubling trend in cryptocurrency thefts. The breach of LastPass has led to an uptick in similar attacks, where stolen private keys from password vaults are used to access wallets and drain funds. The breach’s aftermath is still being felt, with security experts cautioning that many other crypto wallets could be at risk if their owners used vulnerable password managers. Although this case focused on a specific incident involving Chris Larsen, it stands as a cautionary tale for anyone storing substantial amounts of cryptocurrency in digital wallets protected by password managers.

Fact Checker Results:

Data Compromise Link: The breach of LastPass in 2022 is indeed linked to several cryptocurrency thefts, including the Ripple hack.
Seized Funds: Authorities seized over $23 million of the stolen cryptocurrency, confirming the scale of the operation.
Exchanges Involved: The laundered funds were traced to multiple cryptocurrency exchanges, strengthening the case of sophisticated criminal activity.

References:

Reported By: https://www.bleepingcomputer.com/news/security/us-seizes-23-million-in-crypto-stolen-via-password-manager-breach/
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