Ripple's (CRYPTO: XRP) token experienced a significant drop of over 5% on Wednesday amid rumors of a network hack involving $112.5 million.

Ripple's Executive Chairman and co-founder Chris Larsen addressed these concerns on X, stating the breach affected his personal XRP accounts, not the Ripple network itself.

"We were quickly able to catch the problem and notify exchanges to freeze the affected addresses. Law enforcement is already involved," Larsen confirmed in his post.

The breach was first brought to light by blockchain investigator ZachXBT on X.

According to ZachXBT, 213 million XRP tokens were extracted from a substantial wallet on the XRP Ledger blockchain and were then moved through various exchanges, including Binance, Kraken and OKX.

The revelation sparked a mix of concern and humor among the crypto community on X. Satoshi Club wryly commented, "So if Zach never reported it, you wouldn’t tell the public?"

Meanwhile, Pop Punk playfully remarked on Larsen's wealth, saying, “'a few of my personal addresses' – damn you didn’t need to flex like that."

FrancisBovineSwift urged Larsen to share details about the hack once resolved, highlighting the community's focus on security: "Chris, once the dust settles, please share with us what or how the hack happened. As a community that is by nature security aware, we all learn and get better by sharing our experiences. – Thanks in advance!"

Cash Looter expressed astonishment at the scale of Larsen's personal holdings: "Bro lmao HOW do you PERSONALLY OWN 100M USD in Ripple." 

Another user, Harpie, criticized the delayed public disclosure, "happened yesterday, but didn't care enough to share the info with the community?! makes sense, ser."

The price drop prompted $3.8 million in long positions to be liquidated, according to CoinGlass data. Industry experts have previously debated the prospects of an XRP-backed exchange-traded fund. 

Also Read: a16z's Dixon Denies Public Token Sales, But Portfolio Tells A Different Story: Report

Photo: Shutterstock