Smart contract vulnerabilities lead to $150 million XRP theft in 2025

In January 2024, Ripple co-founder Chris Larsen experienced a devastating $150 million XRP theft, which was later traced to a critical security vulnerability in password management infrastructure rather than smart contract code itself. According to a forfeiture complaint filed by U.S. law enforcement in March 2025, the breach originated from the 2022 LastPass security incident, where attackers compromised encrypted password vaults and exposed private keys stored within the platform.

The incident revealed that storing cryptocurrency private keys in third-party password managers presents catastrophic risks. When LastPass was breached in 2022, the compromised data remained dormant until attackers leveraged the exposed credentials to access Larsen's wallet in early 2024. By the time authorities identified the theft, the stolen XRP had appreciated significantly in value, reaching approximately $715 million by October 2025.

This case demonstrates how security weaknesses in supporting infrastructure can have consequences as severe as smart contract vulnerabilities. U.S. authorities subsequently seized $23.6 million in related cryptocurrencies, highlighting ongoing efforts to recover stolen digital assets. The Larsen incident underscores critical lessons for cryptocurrency holders: avoid storing private keys in cloud-based password managers, implement hardware wallet solutions, and maintain security hygiene across all access points to digital assets.

Supply chain attack on XRPL NPM package compromises thousands of applications

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In 2025, the official XRPL NPM package suffered a critical security breach that exposed a sophisticated supply chain attack affecting thousands of applications worldwide. Attackers injected malicious code into the xrpl.js library, a widely-used JavaScript/TypeScript API for interacting with the XRP Ledger. This compromise represented one of the most severe incidents targeting the npm ecosystem in recent history.

The attack operated through a backdoor mechanism designed to steal cryptocurrency private keys from developers and users. Once the compromised package was installed, the malicious post-install script initiated surveillance of target systems, scanning for sensitive credentials, SSH keys, and crypto-wallet files. The exfiltrated data was systematically transmitted to attacker-controlled repositories.

The vulnerability, cataloged as CVE-2025-32965, demonstrated how even trusted open-source infrastructure can be weaponized against the broader cryptocurrency ecosystem. The incident highlighted critical gaps in dependency management practices and the necessity for enhanced supply chain security protocols across development environments and cryptocurrency platforms.

Centralized exchange dependencies increase risk of asset freezes and platform failures

XRP holders face significant vulnerabilities stemming from their reliance on centralized exchange platforms for trading and asset management. When users deposit XRP into custodial wallets on centralized exchanges, they essentially surrender control of their private keys to the platform operator. This structural dependency creates multiple layers of risk that extend beyond typical cybersecurity concerns.

The custody model presents a fundamental challenge: exchanges, not users, maintain control over private keys, making digital assets vulnerable to both platform failures and regulatory intervention. History demonstrates these risks are not theoretical. During the SEC litigation against Ripple, several major exchanges halted direct XRP trading, preventing users from executing transactions and accessing their holdings. This incident revealed how regulatory actions can cascade into immediate trading halts and asset access restrictions, regardless of users' intentions or compliance status.

Security breaches compound these vulnerabilities. Centralized exchanges have experienced significant hacking incidents resulting in substantial financial losses. Beyond security incidents, government enforcement actions can freeze accounts and confiscate assets without user recourse. These convergent risks explain why experienced XRP investors increasingly adopt a consistent strategy: purchasing XRP on centralized platforms, then immediately transferring holdings to self-custody wallets. This practice acknowledges that while centralized exchanges provide essential liquidity and trading functionality, long-term asset security demands individual key custody and direct blockchain management.

FAQ

Is XRP a good coin to buy now?

Yes, XRP could be a good buy for risk-tolerant investors. Its potential for long-term growth and increasing adoption make it an attractive option in 2025.

How much will 1 XRP be worth in 5 years?

Based on current projections, 1 XRP is expected to be worth approximately $2.82 in 5 years. This forecast suggests significant growth potential for XRP in the coming years.

Can XRP hit $100 dollars?

While unlikely in the near term, XRP could potentially reach $100 by the late 2030s, based on current market trends and long-term projections.

Will XRP reach $1000 dollars?

While ambitious, XRP reaching $1000 is unlikely in the near term. Projections suggest it could take several decades, possibly beyond 2040, to reach such a high valuation based on current market trends and adoption rates.