CoinPayments to Compensate XRP Holders next Week

CoinPayments, the multi-cryptocurrency merchant payment, and online wallet service has updated its users about the steps taken by the company to recover stolen Ripple tokens and compensate the affected parties. The update email was sent out to its customers earlier today, about a week after the loss of XRP tokens from its hot wallet was reported.

The latest email offers more details about the June 5, 2017, incident, with exact figures of the losses incurred by the company and the steps 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 held on the application. The flaw is said to have gone undetected for a while, allowing the users who discovered the loophole to take full advantage of it.

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

The developers at CoinPayments have since then worked on tracking the flow of funds, zeroing in on a handful of people who are suspected of siphoning off a majority of funds. The company, refusing to divulge the identities of the people suspected of stealing the funds has stated that it is working along with law enforcement agencies to resolve the issue. Meanwhile, the company is in the process of acquiring XRP from Ripple Inc’s OTC purchase desk.

The company has diverted most of the funds from its corporate liquidity along with contributions from the 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 won’t be able to reimburse the tokens to those who lost them.

CoinPayments has insisted that it wants to ensure transparency in the complete process of procuring and reimbursing the lost XRPs. If everything goes well, the XRP holders who lost the tokens on the wallet platform can start breathing easy from next week.

Ref: CoinPayments | Image: NewsBTC