Bitcoin Forum

Dear,

It is with deep regret we must inform you of an error we discovered in our Ripple service on June 5th, 2017 that allowed a few users to withdraw excessive XRP from hot wallet XRP accounts. Our records show that you are one of the users affected by this unfortunate activity. The issue was hard to detect because of the rarity of circumstances where it could happen. We have done a full review of our systems and added additional checks and protections to make sure similar issues don't occur in the future.

This isolated incident is the first of its kind on our platform and affected only ripple wallets which were not taking advantage of our long-term coin storage solution, the Vault. The people who exploited the glitch were not hackers, but other long term users of our service who made errors or chose not to report the discovered issue and ended up withdrawing other client’s XRP. Their detailed personal information has been collected and they all have been contacted to return the funds immediately. We are in communication with some already and reclamation process has begun with the help of our lawyers. Early response indicates that honesty appears to be prevailing. Some of the funds have already been returned and through a series of escalating steps we will be making every effort to ensure the XRP is returned to its rightful owners. We will be working diligently with local and international authorities for the safe return all balances and will proceed with criminal prosecution of those who do not return the funds willingly.

 Your patience is greatly appreciated as we work through this matter. Note that your balance has been updated to reflect your new balance. Our support staff will not be able to give any information regarding the situation or adjust your Ripple balance.

 We would like to remind everyone that any coin stored for an extended period should always be Vaulted. This service is free and offers the highest level of protection for any funds kept online. Additionally, we will dedicate 1/4 of our revenue flowing directly to effected users until we restore all of the missing value in their accounts. All coins recovered will be evenly distributed among all accounts effected as those come in.

 Sincerely,
 Alex Alexandrov
 Chief Executive Officer
 CoinPayments Inc.



Other people who are a victim of this ?

I think and hope Coinpayments will/can fix this... Still have a lot of trust in the company...

Yes.. Wtf i lost my Ripple.

I hope they do something about it.
If they don't i hope alot of us can come together and i will prepare a lawsuit for sustained financial damages..

I have also received the above email. There is a significant amount missing from my account. I hope they are quick to recover the funds as the amount will increase if ripple goes up.

I'll keep you guys posted and you do the same.

Hey, guys mine Ripple missing too :(:( If they dont do anything to bring the missing ripple for all of us im with you to go search help from layers!!

Same here! All XRPs gone from my wallet. I have emailed support to ask for an indication on when we can expect our XRPs to be restored, but no answer yet.

There is already a petition for Coinpayments.net to pay back the ripple or face legal action
https://www.facebook.com/groups/1986688654888260/

Thanks for pointing us at that, i will look at it right away.

Hi Guys, My Ripple is also gone this morning and I also received the same email.

thats a waste of effort, they clearly say they are working on restoring the funds, not taking them. why can't people just read lol?

If your money was involved in this you will not say that. With crypto currencies, time is everything. I could have traded my ripple for some other currency to increase its value. You cannot hold onto someone's money for whatever reason. It is the company's responsibility to restore all the missing amount in a timely fashion however they want to do it rather than spread all the payment and pay peanuts to member's account until the balance is complete. What is this? An investment site or what?

yeah me and 5 friends of my received the same e-mail from coinpayments... do you guys really believe there is hope they will recover our funds? I really hope so, i had a very large amount holding XRP :(

I hope they can fix this... They have to if they want their reputation stays intact...

One guy lost 2.45 million in XRP...

Got a reply from support:

We are working on restoring everyone's balances as we are collecting back overdrawn funds. All reimbursed funds will be distributed evenly between all effected user as those come in. We will also divert 33% revenue share to all accounts in order to speed time of balance recovery. Unfortunately we are unable to provide any more information for individual accounts, in short; your balance will be restored once we collect the missing funds for everyone.

Mr. Data - Technical Support

Let's wait and see :) seems like they are working on it

surprised the price isn't down more today

Same here.. let's know us if you have any issue guys

So this is a mess up by coinpayment ,most of the time the company wont compensate for these kind of losses,lets see what their official decision would be,this is the exact reason i hate trusting online service providers to hold my assets,as these sort of things happen all the time and the end user has to bear the loss.

It is always bad to see people losing money. Always try to keep as less money as you can on exchanges. Luckily I didnt have anymore funds there. Hopefully CoinPayments will refund everyone as bitfinex did. Is there any official announcement on bitcointalk by Coinpayments yet on how did this happen?

This isolated incident is the first of its kind on our platform and affected only ripple wallets which were not taking advantage of our long-term coin storage solution, the Vault. The people who exploited the glitch were not hackers, but other long term users of our service who made errors or chose not to report the discovered issue and ended up withdrawing other client’s XRP.

This is what they saying through mail...

It did involve my money, and I can read, unlike most of the people here crying about an email they aren't even reading. I've been using them for almost 4+ years, never had no issues. Support always helped with what they could. So when I got this email, I opened a ticket support ticket and asked. (Even tho in the email it says support can't answer questions about this.) They said they are working on it, and its a big mix so they are working hard to get it all fixed. If they wrote it down and sent it to everyone, then that's what I have to go by. Other places that get hacked and other things, just go hide behind lawyers and bankruptcies. These guys at least admitted that shit fucked up, and they are trying to get it back. Instead of fuck you, find us in court. All I can do is give them time to fix the shit, like anyone else. Starting pathetic facebook groups for something that is slowly being solved shows what kind of illiterate scumbag you are. lol

Lost all my Ripples also  :'(

Hope they can fix it, however that will not be easy.
Will wait and see.

I see you are quick to call people names or use offensive language. Lets just say some of us are more mature and wont get involved an online brawl. Thanks for your input. Have a nice day

I agree with you and had money involved too.  They owned up to it and said they're trying to fix it.  I respect that. 

Oh wow it seems like a big problem for ripple and just when the probable Mastercard deal was maybe going to boost it's price. Hope to see the guys regain their XRP back. I don't like the coin in general, but it's bad press for all of us if people simply lose their money due to technical issues. Good luck!

I don't think its a problem with Ripple.
It's a problem on Coinpayments.net.

I have no special knowledge of what happened with coinpayments and it may or may not relate to the quality of their XRP integration. But I have seen several issues caused by poor integration of Ripple. I just want to state again that we (Ripple) are willing to work with companies that want to integrate XRP to ensure they are aware of best practices, commonly made integration mistakes, and so on.

In particular, it is absolutely vital to keep in mind that all the information in the transaction itself is supplied by the user and should not be considered trusted except as an indication of the user's intentions. The servers then process the transaction and report what actually happened, outside the transaction. Because things like varying exchange rates in cross-currency payments can be involved, it is not possible for the transaction itself to describe what actually happened. It is not possible for the system to change the transaction to reflect the results of its execution because it is signed by the user and its hash is the transaction ID, which must be immutable to make it possible to track the transaction through its lifecycle, from before it's executed until after.

For things like the destination tag, all you care about is what the user wanted the destination tag to be. But for the amount, for example, you don't care what the user wanted the amount to be, only what the network was able to actually deliver.

It is also important to keep in mind that a transaction succeeding just means it did something. You have to dig into the metadata to see what it did.

I got the same e-mail. I lost all my Ripple. Had almost 1k usd worth of Ripple.  How will they recover the ripple from someone who joined with only an e-mail address? The person who stole all our ripple knew what he was doing so i am more then sure that he emptied his ripple account hosted with coinpayments.net

Dont know what else i can do to recover my ripple from coinpayments.net

Should i trust them holding more altcoins in their wallets ? Will see abt that..

It seems this is getting solved, but without a doubt if I was the one in that situation I will be very worried about what happened to my coins. Best of luck to all of those that were affected by this.

yes, all these new shills newbie accounts with an incompetent wannabe coin payment site and we have this post.

I also lost about 10,000$ worth of Ripple and am pretty worried that we won't see the Ripple again.  Just because they sent out an email saying they will fix the issue or offer revshare doesn't mean they actually will.  I hope a solution is found, but just because they say "we are working on it" isn't ground for relaxing and thinking everything is fine.  I'm looking for alternative solutions for my store.

Not trying to start anything, just stating what's out there. Basically they messed up, yes. But they are owning up to it, and keeping it transparent (as far as I can see). I didn't even keep up with my ripple balance so they honestly could have taken it and ran with it, I would have not known at all. But that's not what happened.

So that's just why I said it's a waste of time to try some legal action. What if you do actually pull thru into getting all the resources to file it. Then CoinPayments return your funds as they said they are trying to do? Will the courts return your fees then?

Take it easy out there. lol

De igual manera se debe dar seguimiento a este asunto y hacer presion porque si no es muy posible que ni tomen buenas acciones, por eso es necesario tomar conciencia y no dejar este asunto asi nada mas.

Hay que seguir difundiendo el grupo de facebook de los afectados de coinpayment:

https://www.facebook.com/groups/1986688654888260/

i got exactly the same reply from support.

Has anyone heard anything new from Coinpayments?  Don't let this issue stay quiet

Up to this moment coinpayments.net sent me no message regarding my ripple being stolen. I've seen a message from them on other forums that they are trying their best to solve the problem ...

Some questions to ask coinpayments:

1) Are the specific funds missing their funds or their customer funds? Who owned the funds that were stolen?

2) Are they accepting or conceding their liability for the missing amounts? Their emails are ambiguous.

3) In what units are they tracking the missing funds? Are they planning to return the amount of XRP missing or the equivalent USD value?

4) If they are not liable, what is their theory for why they are not liable?

5) If they are liable, what is their theory for why they can impose this loss entirely on one class of their customers? What is their legal theory justifying them imposing their choice of which customers suffer from the loss and which don't?

6) Are they going to disclose what happened in sufficient detail to allow affected customers to evaluate the these questions themselves? If not, do they agree that this virtually forces affected customers to either trust them on no basis at all or sue them?

Hello JoelKatz,

Your questions appear inflammatory and do nothing to help us work through this issue with our clients. Understand that people are worried about their funds and we have made it very clear that we are taking responsibility for the safe return of the users stolen XRP.

Due to the delicate nature of the issue along with legal implications, we cannot provide further information in the detail you have requested. However, we are currently working with Miguel at Ripple OTC if you need to learn more.

Please await a formal update from CoinPayments which will follow shortly.

Sincerely,
CoinPayments Inc.

I owe you guys an apology. I was just shown the full text of an email you had already sent to customers several days before my comment that actually answers most of these questions. I had previously seen another email and an excerpt from this one, but not the part that answered my questions.
I should say that I have no special knowledge about this incident, nor have I communicated with anyone else at Ripple about it other than briefly to offer assistance and was told that it was not needed.

Email update from Coinpayments:

To all our valued customers,

As many of you know, we are standing at the edge of a new society one where currency is digital and massively global. It is CoinPayments mission to keep ahead of the changes and allow our clients to have the best advantages at every turn. With a new world and a new system there are many new opportunities and risks that are undertaken. We are writing you today regarding our continuing investigation into the theft of our user's Ripple coins from the CoinPayments system. As most of you are aware, we discovered a technical issue with the Ripple hot wallets on June 5th, 2017. This security flaw was immediately rectified upon discovery, however the vulnerability allowed a handful of users to overdraw XRP from other user’s accounts.

The total exposure of this theft was over 21 million XRP coins spread across our user base. Through the diligent work of our core developers we have managed to track most of the stolen funds between a few major suspects. These identities will remain private as law enforcement agencies are still completing the investigation.

Firstly, we want to assure you that we take this matter very seriously and we value our user community and our reputation. CoinPayments is committed to returning all the funds that were stolen to every user affected by this crime.

We have identified every person who took advantage of this vulnerability and have reached out to them via our securities lawyers in the hope this was done in error and not in a malicious way.

Many users have come forward and returned the coins they mistakenly withdrew, however the reclamation of the majority of missing Ripple coins from the major suspects is taking much longer than anticipated as this investigation continues.  With the cooperation of local and international authorities we are pursuing this with the full extent of the law.

To show our commitment to our users we are dedicating our entire corporate liquidity reserves to procure XRP coins directly from the Ripple Inc, OTC (over the counter) purchase desk. The core members of our team will also be using our personal funds to assist with the speed of this recovery.

Ripple Inc upper management was immediately contacted in an effort to restore user funds as quickly as possible by purchasing them directly off the market. A purchase of this size on the open market through exchanges would be inefficient and manipulative to the XRP price.  Ripple Inc has graciously offered us locked in current rates for XRP coins in order to facilitate our purchase. This process requires very thorough Know Your Customer and Anti Money Laundering protocols which CoinPayments has been facilitating over this week and finally completed today.

We were hoping to begin reimbursing our users for their losses beginning today, Friday, June 16th, 2017, however due to the large amount of funds required and the complexity of this transaction it will take us through the weekend to complete the Ripple purchase. User accounts will reflect the distribution of the funds in XRP coins as soon as our wire is confirmed early next week. We will continue to update the community as the situation progresses.

The stress and pressure you are feeling is not unheard or taken lightly. We at the CoinPayments community carry the burden of stress in our partnership with you ten-fold. We understand many have used their savings and have mentioned lawsuits. Our desire is that in the months and years you have partnered with us, that we would work through this together and conquer the challenges ahead. We are here to protect the investments and recoup any losses that have occurred. We understand the urgency and frustrations of all of those involved and appreciate all your patience and support. We hope to build a stronger and tighter community through these challenging times.

Rest assured, the CoinPayments team is working day and night WITH you to restore what was lost. Please stay focused on the task at hand and let us recover the money together. We will continue to operate with the transparency and integrity that this community deserves.

We have taken initiative to create a Public Relations department in order to deal with correspondence to the situation at hand. Please forward all inquiries to pr@coinpayments.net, Thank you.

Sincerely,
Alex Alexandrov
CEO of Coinpayments Inc.

Thank you, Coinpayments.

Yes, the problem is with the coin payments not with the XRP. But now the issue has been resolved may be in the coin payments.
We don't know how to secure our wallets with these hackers, even though we provide a lot of security how they are finding the passwords?

where is the OFFICIAL topic? more noobs shit storys i fear..

I'd like to know why 21 million XRP are being held in CoinPayment wallets?  One would assume a weekly or even daily withdrawal to a secure wallet would be in order. CP is not an exchange so there isn't a great need to use them for storage and you don't get any wallet keys. 

I'm glad that CP is doing what it can to get through this though.

Can anyone explain how they recover stolen coins? I didn't really understand that part from there email  ???

My understanding is that they contacted the people who they were erroneously sent to and convinced them to return them. I believe they bought some XRP to make up the difference so that they could return XRP to customers while their recovery efforts were still ongoing.

Isnt your wire transfer with Ripple cleared yet ??
To all the people,
Coinpayments had sent an official email to me ( probably to all the users whose xrp stolen) telling the details of incident and that how they are going to reimburse users early next week when their wire transfer gets cleared. As I am writing this, Wednesday is already over, and I am checking my wallet since monday morning hoping that something will appear but only got dissapointment.

Maybe coinpayments genuinely wants to return money and working on it but what is the point of making such official promises when you are unable to deliver them. Till the last email I had faith in coinpayments and would have used them in future also but after so much waiting and having to check my account every half hour I feel cheated and disrespected by coinpayments. Even when my money gets returned, I wont use or recommend your services.

I just got a transfer from coinpayments.net

Hello Xxxx,

You have received a transfer of 1681.91933945 XRP from CoinPayments Support.

To view your current coin balances click https://www.coinpayments.net/acct-balances

Thank you,
CoinPayments.net
Support is available at: https://www.coinpayments.net/help-support

I dont know why they sent this exact value still. I had 2994 XRP in my wallet before they vanished.

It seems they kept their word... im waiting for the other transfer with the remaining balance now :)

 

And another e-mail from coinpayments.net

Dear users of CoinPayments,

I wanted to give you a midweek update and personally tell you about the progress we have made regarding the recent Ripple incident. As pioneers in new frontiers solutions don't always come without challenges. Although contact has been made with many of the suspects, the funds have not been returned as hoped. This has made it very clear that most of the withdrawals were not done accidentally, but with malicious intent. We are now moving forward with prosecution of the perpetrators to the full extent of the law. This will set a precedent in this territory and deter future financial crimes in the space.

All the reimbursements to this date have come straight from the pockets of the CoinPayments team. Over the past week we have been able to acquire 55% of all of the XRP coins that were stolen through an enduring process with Ripple’s OTC desk. The funds have been distributed evenly amongst all accounts that were affected by this tragic loss. Moving forward, 50% of all CoinPayments’ revenue will be dedicated to acquiring XRP coins and reimbursing our users until we can put this incident behind us.

We thank you from the bottom of our hearts for your patience and support during this challenging time. Our aim is to not only make things right with you, our valued clients, but to also demonstrate that there is integrity and trust amongst our community. We hope you will take this opportunity to continue supporting CoinPayments as it grows, develops, and adapts, and cryptocurrencies pave the way to the future of finance.

Sincerely, your team at CoinPayments Inc

To all our valued users,

After a long and arduous 6 months, our team at CoinPayments is proud to announce completion of the reimbursement for all stolen Ripple (XRP) coins from the unfortunate incident of June 5th, 2017. We have remained dedicated to our initial statement and compensated all users in full for their losses in XRP balance. We have completed a complex back-end rebuild including multiple new safety measures and protocols to ensure this issue never occurs again. CoinPayments is committed to setting precedence and prosecuting individuals to full extent of the law for abusing our services. We continue to work diligently with the Royal Canadian Mounted Police along with international authorities in France, the Netherlands, Russia and other cooperating countries to complete the long and tedious prosecution of all perpetrators who didn’t return the stolen funds. We will update the community once arrests are made and prosecution is completed.

We are excited to move forward with integrity and transparency and greatly appreciate all of your patience and support throughout this process.

Happy holidays!

Sincerely,
Your team at CoinPayments Inc. :) :) ;)

hi
my friend transferred 165 ripple to my account  yesterday . today when i tried to enter my account my password seemed to be changed so i restarted it . when i got into my account i saw all my coins have been transferred to an anonymous account. please help me my life is ruined. what can i do?

Guys  Plz  help me   :(  what can i do ????? anyone?

you've probably got hacked. is your friend knows your wallets password?  because if he did then maybe he is just the real suspect behind this. or maybe you just visited a clone/phised site of coinpayments.net without notcing the correct url addres but you can still try to contact their costumer support for immediate help and see if they can still recover your lost coins although it is not really possible because cryptos dont have a cashback support unlike to paypal or any other payment methods.

hi

I am interested to buy 2000 XRP

anyone here for sell?

reply to my msg kindly

thanks for the answer

no he didn't know the password. its really sad when u get in Crypto Investing and lose all your money in less that 14 hours . website support is joke! all my coins automatically sent to another wallet. without my permission  , when I check in transactions its shows that xrp send by you to another address. its really dangerous and it has Worse support ever It's a fraud!
what u guys recommend for xrp and tron coins?

I just looked up un4given.1991's support ticket, his email had been hacked and the hacker accessed his account that way to send the funds (they were sent to ShapeShift.) HTTP logs showed the hacker doing a password reset then logging in with Email 2FA and doing email confirmation of the withdrawals.

We do highly recommend enabling Google Auth/TOTP on all accounts so there isn't a single point of failure on your account.