$3M XRP Stolen, Tracked to Southeast Asian OTC Networks

An investor lost $3 million in XRP after hackers accessed his wallet. Blockchain analysis indicates the funds rapidly moved through over-the-counter networks linked to Southeast Asia.

Funds Traced to OTC Networks

Blockchain investigator ZachXBT traced the funds to a Tron address, then through illicit OTC services associated with Huione Guarantee.
Huione Guarantee is connected to criminal activities, complicating fund recovery efforts.
Public ledger tracking cannot ensure law enforcement can identify final holders.

Victim's Account

Brandon LaRoque, the investor, built his XRP holdings over eight years, totaling 1.2 million coins.
He used an Ellipal device, initially thought secure, which was compromised due to improper seed phrase management.
Ellipal stated misuse of the seed caused the breach rather than device flaws.

LaRoque and his wife, planning to retire, now face financial setbacks, highlighting risks for long-term small investors. Despite offers of help online, recovery remains uncertain.

Caution on Recovery Efforts

ZachXBT advises quick action and consulting competent investigators, avoiding firms promising guaranteed returns.
While blockchain tracing reveals fund movement, converting this into legal actions or asset recovery is challenging.
Limited access to specialized crypto law enforcement in the US hinders recovery success in international cases.

Institutional Activity vs. Retail Losses

XRP experiences significant institutional activity, with futures trading at $23.7 billion since May 2025.
Open interest stands at $1.4 billion, with 29 large institutional investors recorded.