TLDR
- The XRP bridge linking the XRP Ledger and tx lost nearly 200,000 XRP, worth about $200,000.
- The attacker exploited a software flaw that allowed fake XRP deposits to be recorded without sending funds to the reserve wallet.
- The exploit lasted about 97 minutes on August 9 before the bridge was halted.
- 17 of 28 relayers approved the withdrawals because the bridge incorrectly recorded the deposits as valid.
- tx said it has fixed the vulnerable code, hired blockchain forensic specialists, and filed a complaint with the FBI’s Internet Crime Complaint Center.
An XRP bridge linking the XRP Ledger with tx lost nearly 200,000 XRP after an attacker exploited a software flaw. The stolen tokens were worth about $200,000 at current prices, according to project disclosures.
The attack happened on August 9 and lasted about 97 minutes before operators halted the bridge. The bridge connected XRP Ledger users with Coreum, which rebranded as tx in March.
XRP Bridge Flaw Created Fake Deposits
The attacker found a way to make the bridge record XRP deposits that never reached its reserve wallet. The system then issued bridged XRP on the tx network against those false records.
The attacker returned the unbacked tokens through the bridge and withdrew real XRP from the reserve. This process drained funds that should have backed legitimate bridged assets.
Normally, the bridge holds real XRP in its reserve wallet before creating matching tokens on the connected chain. Users can later return those tokens to unlock the XRP held in reserve.
Relayers Approved Withdrawals as Designed
The drain started at 19:16 UTC. Seventeen of the bridge’s 28 relayers approved each payout because the system showed valid deposits in its internal records.
Relayers monitor activity on both chains and authorize transfers when the bridge says a withdrawal is due. In this case, the relayers followed the data provided by the flawed deposit system.
tx said the core problem came from relayer software that processed payments carrying the bridge memo. The code did not first confirm that XRP had reached the correct destination address.
This flaw allowed transactions with the proper memo to appear as deposits even when they sent no XRP to the reserve. The bridge then created balances that had no real backing.
tx Fixes Code and Contacts Authorities
tx said it identified and fixed the vulnerable code after halting the XRP bridge. The project also hired blockchain forensics specialists to trace the stolen funds and review the attack.
The team filed a complaint with the FBI’s Internet Crime Complaint Center. It has not announced a repayment plan for affected holders or explained when the bridge may reopen.
Onchain data showed that most of the stolen XRP moved through several addresses within hours. Investigators continued tracking the funds after the transfers moved through those addresses.
