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CoinPayments to compensate XRP owners next week

CoinPayments, the multi-cryptocurrency merchant payment and the online portfolio service have updated their users on measures taken to recover stolen Ripple tokens and compensate stakeholders. The e-mail update was sent to its customers today, about a week after the loss of the XRP token from its hot wallet.

The last email offers more details about the accident of 5 June 2017, with the exact figures of the losses suffered by the company and the steps taken since then. The loss of XRP tokens was caused by a bug in the platform, which apparently allowed few people to withdraw more XRPs than they actually were in the application. It is said that the flaw was not detected for a while, allowing users who discovered the loophole to get the most out of it.

Shortly after discovering the bug, CoinPayments updated customer account balances to reflect the actual ownership status of XRP on the platform, which in most cases was zero. According to the latest update, the company lost over 21 million XRPs for unauthorized withdrawals and so far attempts to get them back have received mixed results.

Since then, CoinPayments developers have been working on monitoring the flow of funds, focusing on a handful of people suspected of stealing most of the funds. The company, refusing to disclose the identities of people suspected of stealing funds, has stated that it is collaborating with the forces of order to solve the problem. Meanwhile, the company is in the process of acquiring XRP from the OTC buying counter of Ripple Inc.

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

CoinPayments has insisted that it wants to ensure transparency in the complete process of procuring and redeeming lost XRPs. If all goes well, XRP owners who have lost their tokens on their wallet platform can begin to breathe easily from next week.

referee: CoinPayments | Image: NewsBTC

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