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The escalating conflict on X between the affected team and former Ripple developers shows that the recent large-scale wallet drain did not come as a surprise to experts.
On Sept. 3, 2026, an incident involving the mobile wallets of XRP Healthcare, formerly known as XRPayNet, occurred within the XRPL ecosystem. In just three hours, the attackers drained the balances of thousands of users, stealing approximately 267,000 XRP and millions of related tokens, which were quickly transferred to the Ethereum network.
Forensic analysis uncovered a critical bug: users' private seed phrases were sent to a server when staking features were activated.
Against this backdrop, developer BiasGoose stated that the incident was "not news to me," as he had previously rejected grant applications from the team.
While developers search for the stolen coins, former Ripple devs look back at the project's past sins
As it turned out, former Ripple employees had blacklisted the project long ago. According to BiasGoose, the Uganda-linked medical initiative had shown signs of fraud from the outset. Its creators had been caught "blatantly lying about partnerships in their application" to secure funding and generate artificial hype.
The developer stressed that the product did not need its own token at all: "whatever it was didn't need a token."
Security experts Hazard Cookie, formerly of Ripple, and Matt Hamilton confirmed that auditors had been documenting the project's architectural risks for years. The community also remembers the team as scammers who were "kicked to the curb as known scammers" during previous market cycles between 2022 and 2024.
In response to the criticism, the project team released an official statement confirming the hack. Platform representatives said developers were already conducting an urgent investigation, fully tracing the transactions on the blockchain and coordinating with relevant authorities to freeze and recover the assets.
At the same time, they accused the former Ripple developers of unethical behavior, saying that they had put their own names and money at stake while their opponents merely mocked the risks taken by others. According to the affected team, publicly celebrating the misfortune of colleagues is "genuinely pathetic," and they had expected "far more character" from industry veterans.
At press time, the discussion on X had stalled after a harsh response from BiasGoose, who shot back that, unlike the creators of the hacked application, he "never took risks with other people's money, my guy."
While the project team attempts to trace the stolen funds and former Ripple employees point to years-old audits, the crypto community is left to assess the arguments from both sides: was this a tragic developer error or the predictable outcome of a project whose red flags had been ignored for years?
Dan Burgin
U.Today Editorial Team
