A North Carolina man experienced a devastating loss in the early hours of October 15, 2025, when over $3 million in XRP disappeared from his wallet. The incident involved Brandon LaRocque, a long-time investor who had accumulated 1,210,000 XRP over the past eight years. He believed his assets were stored securely in an Ellipal cold wallet. Instead, the funds were exposed, leading to a complete loss.
This man lost $3 Million Worth Of #XRP Overnight
On Oct 15, 2025, a North Carolina man watched $3M+ in XRP — his life savings — vanish overnight.
What he believed was a secure cold wallet may have actually been a hot wallet, exposed by confusing branding.
Blockchain sleuth…
— BULLRUNNERS (@BullrunnersHQ) January 19, 2026
Confusing Wallet Design
The incident centers on the nature of the wallet LaRocque used. While marketed as a cold wallet, which is generally considered secure for long-term storage, it appears to have functioned with hot wallet vulnerabilities. Confusing branding likely contributed to the exposure of his funds, allowing attackers to access them without warning.
Clarity in wallet design is essential. A wallet’s labeling and actual security protocols must align to prevent accidental exposure. In this case, the gap between expectation and reality proved financially catastrophic.
Tracing the Funds
Blockchain analyst ZachXBT traced the stolen XRP as it moved through the network. The funds were bridged, split, and transferred across multiple chains. According to his findings, the assets ultimately entered networks linked to Southeast Asian scam operations. The tracing confirms the movement but does not provide a path to recovery.
Law enforcement agencies, including the FBI and local cyber units, were unable to recover the stolen assets. Efforts by private recovery services proved ineffective, often operating as scams themselves. LaRocque’s case illustrates the challenges of recovering cryptocurrency once it leaves the original wallet.
Lessons on Security
LaRocque’s experience emphasizes the importance of careful security management. He noted that he had held XRP since 2017 and took what he believed were standard precautions. Despite this, a single mistake resulted in the loss of years of accumulated savings.
The case demonstrates that even well-established wallets require users to understand their functions. Investors are frequently advised to store their tokens in cold wallets. However, they must confirm the wallet’s actual operational protocols rather than rely solely on branding or marketing.
The story also serves as a reminder for the cryptocurrency community. LaRocque’s situation suggests the need for ongoing vigilance, particularly with high-value holdings stored in wallets that claim enhanced security.