A significant security breach has led to the halting of Ellipal’s hot wallet services, after a user in North Carolina suffered a $3 million theft. The incident highlights the risks associated with hot wallets and raises questions about how to ensure secure cryptocurrency storage. 1.2 million XRP were stolen from a user when his cold wallet seed phrase was mistakenly imported into the Ellipal app. Ellipal is halting its hot wallet operations as part of their commitment to offline cold storage, but the incident has also sparked concerns about security practices within the wider crypto community. This event will likely lead to renewed conversations on self-custody, and how best to protect assets from theft.