XRP Healthcare Wallet Hack Sparks Ripple Developer Feud

A major XRP Healthcare wallet hack has triggered a heated dispute between the project team and former Ripple developers, with critics arguing that warning signs surrounding the platform had existed for years.

The security breach occurred on Sept. 3, 2026, targeting mobile wallets associated with XRP Healthcare, formerly known as XRPayNet, within the XRP Ledger (XRPL) ecosystem. Attackers reportedly drained thousands of users' wallets within three hours, stealing roughly 267,000 XRP along with millions of related tokens. The stolen assets were quickly transferred to the Ethereum network.

Forensic analysis later identified a critical security flaw involving users' private seed phrases. According to investigators, seed phrases were transmitted to a server when users activated staking functionality, creating a serious vulnerability that attackers could exploit.

Following the incident, developer BiasGoose said the breach was "not news to me," revealing that he had previously rejected grant applications connected to the project. He alleged that the Uganda-linked healthcare initiative had made misleading partnership claims while seeking funding and generating publicity. He also questioned why the platform needed its own cryptocurrency token.

Former Ripple-linked security experts, including Hazard Cookie and Matt Hamilton, also pointed to longstanding concerns about the project's architecture. Critics claimed that security risks and other red flags had been documented during previous crypto market cycles between 2022 and 2024.

XRP Healthcare confirmed the wallet security incident and said developers were conducting an urgent investigation. The team said transactions were being traced on-chain while it coordinated with relevant authorities in an effort to freeze and recover the stolen crypto assets.

However, the project pushed back against former Ripple developers criticizing its record, accusing them of mocking a team dealing with a serious security breach. The dispute intensified on X, with BiasGoose responding that he had never taken risks with other people's funds.

As investigators continue tracing the stolen XRP and tokens, the incident has renewed debate over crypto wallet security, private-key protection and whether earlier warnings surrounding XRP Healthcare should have received greater attention.