A recent high-profile crypto theft has highlighted the vulnerabilities of digital wallets and the growing sophistication of online fraudsters. A U.S. investor reportedly lost $3.05 million worth of XRP after their Ellipal wallet was compromised. The attack, traced by blockchain expert ZachXBT, revealed a complex laundering network connected to Southeast Asian illicit activity. The theft occurred on October 12, 2025, and involved over 120 transactions using Bridgers (formerly known as SWFT).** Despite initial connections with Binance, the actual transfer of funds was routed through OTC brokers linked to Huione, an online marketplace with a history of illegal activities. Huione is known for facilitating billions of dollars in illicit transactions and faces recent sanctions by the U.S. Treasury.** ZachXBT’s investigation revealed the victim’s confusion regarding wallet types likely played a role, as they mistakenly believed their Ellipal wallet was a cold storage device, when it actually functioned as a hot wallet. His report emphasizes that educating users about different wallet types is crucial to preventing future losses. The case underscores challenges in recovering stolen funds due to limited expertise in blockchain crime and the use of offshore networks, particularly with OTC brokers.** ZachXBT’s analysis raises concerns regarding predatory recovery firms who prey on victims’ desperation by charging exorbitant fees for basic tracing reports without delivering substantial results. While recovery is likely impossible in this specific case, it serves as a reminder that **education and vigilance are essential tools against crypto theft.**