The Chief Financial Officer of TREASURY has issued a warning that exploiters could leverage crypto exchange Uphold to sell stolen XRP funds.
In a recent tweet, Fredo Ayala, the Chief Financial Officer (CFO) of TREASURY, raised concerns that Uphold, a prominent U.S.-based crypto exchange, might unwittingly become a platform for the sale of stolen XRP.
Ayala stated that a community member had contacted him regarding a compromised device, leading him to trace several wallets to an outbound payment from Uphold’s platform, initiating the chain of transactions involving the stolen funds.
Hey @UpholdInc , I have a situation in which I believe your Exchange is going to be used to sale stolen #XRP.
I had a community member reach out to me about a compromised device and there are a few wallets I was able to chase back to a outbound payment from your exchanges to… pic.twitter.com/y28fVdy2Iw
— Fredo Ayala ?☠️ ? (@Fayala_brash) June 29, 2023
The wallet that activated the culprit’s address is hosted on the Uphold exchange. As highlighted by Ayala, data from XRPL explorer Bithomp shares insight into the chain of events.
Per Bithomp data, the transaction in question occurred on May 23, 2023, with the wallet involved in the theft being activated on May 28, 2023. This wallet was activated by an address hosted on Uphold.
Ayala explicitly pointed out that the stolen XRP is currently residing in the recently-activated wallet. The exploiters sent the stolen funds to the wallet barely an hour after activating the wallet.
These funds, amounting to 30,000 XRP, represent a collective investment made by a group of veterans who had entrusted their funds to a hardware wallet for secure storage.
Expressing his concern, Ayala called upon the XRP community to unite to address the issue and undo the theft’s consequences. Furthermore, he emphasized that this incident should be recognized as a cybercrime, warranting the Federal Bureau of Investigation (FBI) investigation.
Ayala has taken it upon himself to provide the necessary information to the affected parties, enabling them to collaborate with law enforcement authorities and Uphold to track down the individual responsible for funding the account used in the theft.
Uphold’s Sustained Support for XRP
The impact of this incident could extend beyond the immediate victims, affecting the overall reputation of Uphold, considering the public call for action from them. Uphold is one of the few U.S.-based exchanges that have continued to support XRP despite the SEC lawsuit.
In April, Uphold affirmed that they never delisted XRP, confirming that they hold over 2 billion XRP as reserves. The exchange holds more XRP than Bitcoin (BTC) and Ethereum (ETH). This situation underscores the large amount of U.S.-based XRP investors leveraging the platform.
Uphold unveiled over-the-counter trading for XRP and other assets on June 1 to extend support for the asset further. A few days prior, Nancy Beaton, Uphold’s Chief Revenue Officer, affirmed that XRP meets all legal criteria for exchange listing.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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