Massive XRP Theft from Ellipal Cold Wallet Highlights Risks and Recovery Challenges
On October 12, 2025, Brandon LaRoque, a 54-year-old retiree from North Carolina, discovered a devastating loss when approximately 1.2 million XRP worth about $3 million was stolen from his Ellipal cold wallet. The theft was identified four days later when Brandon checked his wallet and noticed suspicious transactions.
The initial breach involved two small transfers of 10 XRP each, likely probes by the attacker. Shortly after, about 1.29 million XRP was transferred to a newly created wallet and subsequently split and sent across 500 to 900 different wallets through sophisticated mixing techniques to obscure the trail.
Blockchain investigator ZachXBT traced the theft to a complex laundering network based in Southeast Asia. The stolen funds moved through more than 120 Ripple-to-Tron bridge transactions, further complicating efforts to track and recover the assets.
Despite efforts to recover the lost funds, prospects remain low as over 95% of recovery companies in the crypto space are considered predatory. Brandon has filed reports with the Internet Crime Complaint Center (IC3) and local law enforcement agencies.
Ellipal responded by stating that the loss occurred because the cold wallet's seed phrase was improperly imported into the Ellipal app, compromising the wallet's security. This highlights how even cold wallets, known for security, can be vulnerable if not used correctly.
This incident serves as a stern reminder to crypto holders about the importance of stringent security practices when managing wallets and private keys.
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