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XRP bridge halted after software flaw enabled withdrawals of real tokens

Nearly 200,000 XRP worth about $200,000 were drained from the XRP Ledger to tx bridge after the system credited non-existent deposits as real, according to CoinDesk.

Reported · Written up by our desk · Market Structure

CoinDesk reports that an XRP bridge linking the XRP Ledger to Coreum, which rebranded to tx, was halted after an attacker exploited a software flaw. The bug let the bridge register deposits that never occurred, minting unbacked bridged XRP on the other chain.

The unbacked bridged tokens were then used to withdraw genuine XRP from the bridge reserve wallet, the outlet said. The drain began at 19:16 UTC on Aug. 9, and XRP worth about $200,000 left the reserve in roughly 97 minutes before tx halted the system.

CoinDesk adds that tx said it patched the vulnerability, hired blockchain forensics experts, and filed a complaint with the FBI. The operator has not yet explained how affected holders will be compensated, the outlet reported.

The bridge is designed to act like a vault, issuing bridged XRP when a user sends real XRP into a reserve wallet and allowing withdrawals when those bridged tokens are returned. In this case, the bridge’s records incorrectly showed that deposits were real, authorizing payouts by a majority of the bridge’s relayers without destination address verification, according to CoinDesk.

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