XRP Investor Flags Security Breach at Bitrue Exchange

Concerns over XRP security have intensified following a troubling incident involving the cryptocurrency exchange Bitrue. An XRP investor has accused the platform of mishandling funds under suspicious circumstances, suggesting possible insider involvement in a recent token loss.

The allegations were brought to light by an XRP and Flare community advocate known as PapaBear. In a video shared on social media, PapaBear explained that he deposited XRP tokens into his Bitrue account for trading, only to find that approximately 2,045 XRP—valued at around $4,764—had been transferred to an unknown wallet without his permission or action.

According to PapaBear, his Bitrue account had multiple layers of protection, including Google Authenticator, email confirmation, and a six-digit PIN that he did not store anywhere else. Given the complexity and layered defense of his account, he argued that breaching all these security protocols would be highly unlikely without inside access.

When he contacted Bitrue, the exchange attributed the incident to a hacking attempt, stating that malicious actors infiltrated his account. However, PapaBear contended that this response was insufficient and lacked the required support needed to help recover his lost XRP.

More troubling is his assertion that he is not the only victim. In a tweet following his video, PapaBear indicated that other users have also encountered similar incidents involving missing digital assets on the same platform. This raises the unsettling possibility of a pattern of issues at Bitrue, potentially involving deeper system vulnerabilities or insider activity.

Eri Chan, a well-known voice in the XRP community, took note of PapaBear’s post and reposted his tweet. She encouraged others who may have experienced comparable issues with the exchange to reach out and potentially take coordinated action.

Bitrue’s Turbulent History With Security

Launched in 2018 with a focus on XRP, Bitrue has grown to support over 700 cryptocurrencies across 1,100 trading pairs. Despite this broad offering, the company has long been dogged by security concerns and customer dissatisfaction. Users have repeatedly cited unresolved complaints, allegations of manipulation, and a lack of transparent regulation. With Bitrue’s registration in Seychelles—a jurisdiction not typically known for strict financial governance—skepticism has followed the platform throughout its evolution.

In 2019, merely a year after its inception, Bitrue suffered a high-profile hack. At the time, attackers took advantage of a firewall vulnerability and made off with approximately $4.2 million worth of XRP and ADA. Bitrue promised to reimburse users completely for their losses.

Another exploit occurred in 2023, this time resulting in the theft of $23 million. According to reports, the compromised hot wallet contained various digital assets including Ethereum, Shiba Inu, and Polygon.

Accusations of Market Manipulation

Bitrue has also faced persistent complaints from users who accuse the platform of manipulating asset prices for its own benefit. Some traders believe the exchange purposely creates abrupt and extreme price shifts to trigger stop-loss orders and liquidate leveraged positions. Incidents such as XRP briefly dropping to $0.0001 on Bitrue have fueled these suspicions.

One user, for instance, commented that such manipulative behavior undermines market fairness and translates into direct financial losses for participants who trust the platform’s pricing accuracy.

While these claims are not officially confirmed, they serve as a cautionary tale for crypto investors. Traders are encouraged to thoroughly assess the exchanges they use, considering not only the features but also the reliability, transparency, and regulation standards of each platform.

Related: Expert Advice: Sell XRP If You’re Confused

As of now, Bitrue has not issued any public statement in response to these most recent allegations. Concern within the XRP community continues to rise, with users calling for better safeguards and accountability across centralized platforms.