Bitfinex protects user funds by blocking massive $15 billion XRP exploit attempt
Posted: Jan 15, 2024 2:41 AM Updated: Jan 15, 2024 2:41 AM
Correction and fact check date: January 15, 2024, 2:41 AM
briefly
Attackers attempted to exploit the Bitfinex cryptocurrency exchange by leveraging XRP’s partial payment functionality, but were not successful.
Attackers attempted to exploit cryptocurrency exchange Bitfinex by leveraging XRP’s partial payment feature, but were not successful.
According to Bitfinex Chief Technology Officer Paolo Ardoino, the reported transactions involving approximately $15 billion worth of XRP from unidentified wallets to Bitfinex were never completed and were confirmed to be part of a failed “partial payment exploit” attempt.
Blockchain tracking account Whale Alert reported observing 25.6 billion XRP, or nearly half of the circulating supply of XRP, being traded from unidentified wallets to Bitfinex. However, Whale Alert later deleted the post and stated that there were several inaccuracies in the post due to problems accurately interpreting Ripple node responses.
Bitfinex’s Ardoino later revealed on Platform The attackers expected the exchange to have misconfigured its software, particularly in partial payment processing. However, Ardoino pointed out that the attack was not successful because Bitfinex effectively manages the ‘delivered_amount’ data field.
The partial payment exploit operates under the assumption that the company has a misconfigured system that only interprets the “amount” field of XRP transactions, which is typically set to a significant value. In practice, the exploiter submits significantly smaller amounts, as indicated in other areas of the trade, with the intention of securing credit for the difference from the company.
Similarly, hackers attempted a similar attack on Binance by launching a transfer of 58.9 billion XRP, but it appeared to be unsuccessful, as evidenced by blockchain data.
Cryptocurrency Exchanges Witness Continuous Security Breaches
In the cryptocurrency environment, the decentralized nature of blockchain technology attracts not only legitimate users but also opportunistic hackers looking to exploit vulnerabilities. The growing threat of cyberattacks is casting a shadow over the security measures implemented by cryptocurrency exchanges.
Recently, cryptocurrency trading platform Catalyx discovered security vulnerabilities related to customer asset management. The vulnerability, reportedly caused by fraudulent activity by employees, led the company to suspend withdrawals and all trading activities.
The exact amount of the loss has not been disclosed, but Catalyx has begun an investigation process to resolve the incident.
In another attempt to compromise a cryptocurrency exchange, hackers successfully accessed Binance’s law enforcement request panel, a panel commonly used by online financial institutions or social media platforms to authenticate law enforcement requests. The hackers then stole the credentials, giving anyone access to account data for a fee.
Attempts to manipulate XRP’s partial payment functionality on Bitfinex cast a shadow over its integrity, reflecting the ongoing battle between the exchange and cyber attackers.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles