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A US financier claims he lost $3 million in XRP after cybercriminals drained his wallet, and blockchain analysis indicates the assets traversed rapidly through obscure over-the-counter networks associated with Southeast Asia.
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Funds Traced To OTC Networks
Per blockchain investigator ZachXBT, the embezzled digital coins were initially consolidated into a single Tron address and then funneled through OTC services linked to an illicit platform known as Huione Guarantee.
Reports have revealed that Huione Guarantee is associated with an array of criminal activities, and once funds pass through those channels, they are extremely difficult to reclaim.
The trace offers a distinct log of movement on public ledgers, yet it does not ensure that law enforcement can track the money to its ultimate possessors.
9/ Regrettably, the chances of this victim retrieving any funds are quite slim due to a delay in notifying competent authorities within the private sector.
I urge victims to report theft addresses to the relevant parties as promptly as possible to avoid… pic.twitter.com/Ficcit611f
— ZachXBT (@zachxbt) October 19, 2025
Victim Says He Followed Best Practices
Brandon LaRoque, the investor at the heart of the situation, informed viewers that he had amassed his position over eight years and possessed approximately 1.2 million XRP.
He shared a video this week detailing the loss, which has gained significant traction online. “I believed I did everything correctly,” he remarked, after recounting how his Ellipal device ended up being linked to the internet.
The device manufacturer, Ellipal, admitted that the seed phrase was entered into an application and stated it was making every effort to assist.
According to reports, the company suggested that the theft followed improper usage of the seed rather than a defect in an entirely offline product.
A Human Cost
LaRoque mentioned he and his wife retired approximately a year ago and were planning to purchase a home in Las Vegas. Now they express that they might need to seek employment again.
The loss starkly illustrates how long-term small investors can be overwhelmed by a single security breach. The psychological toll is significant.
Numerous viewers on social platforms have offered assistance, but specialists caution that public interest does not equate to recovery.
Experts Urge Caution On Recovery Firms
According to ZachXBT, victims aiming for recovery must act swiftly and engage capable private investigators while steering clear of exploitative firms that promise guaranteed returns.
Tracking on the blockchain can indicate where funds went subsequently, and it can unveil links to mixing services or OTC desks, yet translating that trace into apprehensions or asset recoveries is intricate.
In the US, access to specialized crypto law enforcement remains limited, which diminishes the likelihood of successful recovery in many cross-border theft incidents.
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Institutional Activity Rises As Retail Losses Persist
Meanwhile, XRP has experienced significant activity in regulated markets. Reports indicate over 476,000 XRP futures contracts exchanged hands since May 2025, representing a total of $23.7 billion.
Open interest has climbed to $1.4 billion, and the count of large institutional investors reached a record of 29.
Featured image from Gemini, chart from TradingView
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