CoinPayments to compensate XRP holders next week


CoinPayments, the multi-cryptocurrency merchant payment and online wallet service have updated its users on the steps taken to recover stolen Ripple tokens and compensate stakeholders. The update email was sent to his customers today, about a week after he reported the loss of XRP tokens from his hot wallet.

The latest email offers more details on the June 5, 2017 incident, with exact figures of the losses suffered by the company and the measures it has taken since then. The loss of XRP tokens was caused by a bug in the platform, which apparently allowed few people to withdraw more XRP than they actually contained in the application. The flaw is said to have gone unnoticed for a while, allowing users who discovered the loophole to take full advantage of it.

Immediately after discovering the bug, CoinPayments updated the customer account balances to reflect XRP’s actual holding status on the platform, which in most cases turned out to be zero. According to the latest update, the company has lost over 21 million XRPs due to unauthorized withdrawals, and so far attempts to get them back have received mixed results.

CoinPayments developers have since been working on monitoring the flow of funds, focusing on a handful of people suspected of having stolen the majority of funds. The company, refusing to disclose the identities of those suspected of stealing the funds, said it was working with law enforcement to resolve the matter. Meanwhile, the company is acquiring XRP from Ripple Inc.’s OTC purchasing desk.

The company has diverted most of the funds from its corporate cash along with contributions from promoters to procure the required amount of XRP at a fixed price from Ripple Inc. However, until the transaction from CoinPayments is executed, the company will not be able to refund tokens to those who have lost them.

CoinPayments insisted on ensuring transparency in the complete process of acquiring and reimbursing lost XRPs. Hopefully, XRP holders who have lost tokens on the wallet platform can start breathing easily from next week.

Ref: CoinPayments | Image: NewsBTC

Disclosure: The author is one of the CoinPayments user who was affected by the XRP token incident.

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