A U.S. crypto investor lost $3.05 million in Ripple’s native token XRP after their Ellipal hardware wallet got hacked. The stolen 1.2 million XRP went through Bridgers and was eventually laundered using Over-The-Counter (OTC) channels connected to Huione, a Southeast Asian platform that was recently sanctioned by U.S. authorities for fraud and money laundering.
The theft came to light after a video about it went viral on YouTube. The victim didn’t share the wallet address, but blockchain records showed it was r3cf5mgj5qEcj9n4Th28Es7NVRnXGJjkzc.Â
The wallet appears to have been compromised due to user error, but the precise circumstances remain unclear.
The attacker carried out over 120 Ripple-to-Tron transactions via Bridgers on October 12, 2025. On public block explorers, these transactions appeared to involve Binance, since Bridgers uses Binance for liquidity.Â
By the same day, the stolen XRP was consolidated into a Tron address: TGF3hP5GeUPKaRJeWKpvF2PVVCMrfe2bYw. By October 15, the funds were fully laundered through OTC channels linked to Huione.
Huione’s role in illicit activity
Huione has been linked to the laundering of billions of dollars in illicit funds, including proceeds from scams, human trafficking, and hacks throughout Southeast Asia.
Recently, U.S. authorities added more sanctions on Huione after a $15 billion seizure linked to the Prince Group. This shows the platform is involved in large-scale financial crime.
Lessons for crypto users
The case shows a common risk in handling cryptocurrency: confusing custodial wallets with non-custodial ones. In this situation, the victim believed the wallet was cold storage, but it was actually functioning as a hot wallet. Similar mistakes happen when funds are transferred to compromised accounts through impersonation or social engineering.
Recovering stolen crypto is hard. U.S. law enforcement doesn’t have much capacity for big crypto thefts. Going through civil courts costs a lot and might not work. Many recovery companies charge high fees and don’t really help. Reporting the theft right away is the only way to have a chance at getting the funds back.
A low chance of recovery
Because of delays in reporting, the victim faces slim odds of recovering their XRP. Experts recommend that victims report thefts immediately and flag the addresses publicly to alert the community.
Ripple, unlike Bitcoin, Ethereum, and other major blockchains, doesn’t have a strong support system for victims. Because of this, reporting thefts quickly and taking immediate action is very important.
The incident also shows that crypto security isn’t only about technology. How wallets are managed, reporting any thefts promptly, and being careful with transfers are all essential when dealing with large crypto holdings.
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