XRP Hacker Exploits Vulnerability, Steals $200k

A recent hacking incident involving the XRP Ledger has resulted in the theft of approximately $200,000 worth of cryptocurrency. The attack occurred on August 9th when a critical security vulnerability in the software was exploited by an attacker.

The bridge operating between the XRP Ledger (XRPL) and the tx network was halted after the attack, which allowed the attacker to create bridged XRP balances without any actual XRP deposits. These unbacked balances were then used to withdraw real XRP from the bridge's reserve on the XRPL.

The tx team stated that an error in the bridge's investment detection mechanism allowed some transactions to be recorded as successful deposits, even though no XRP reached the bridge address on the XRPL Ledger. The attacker took advantage of this vulnerability to withdraw 200,000 XRP from the reserve.