Bitfinex Blocks Massive $25B XRP Hack Attempt
A recent incident that initially suggested a substantial transfer of XRP has now been linked to an individual attempting to compromise the security of cryptocurrency exchange Bitfinex.
Paolo Ardoino, the Chief Technology Officer of Bitfinex and the Chief Executive Officer of Tether, revealed that an unknown entity tried to exploit the “partial payment” feature within the XRP Ledger. This feature allows users to send an amount less than the specified total in a transaction, potentially posing a threat to the exchange.
The attempt to compromise Bitfinex triggered alerts within Whale Alert, a service designed to monitor and report large transactions. Whale Alert subsequently issued an alert, which has since been removed, claiming that an exceptionally large portion of the overall XRP supply had been transferred in a single transaction.
Ardoino explained the situation, mentioning that an individual tried to breach Bitfinex through the ‘Partial Payments Exploit.’ Fortunately, the attempt was unsuccessful, as Bitfinex adeptly manages the ‘delivered_amount’ data field.
In a “partial payments exploit” endeavor, the attacker anticipates that the recipient will only inspect the “amount” field without closely examining the “delivered” field.
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By doing so, the attacker aims to confirm the entire transaction, compelling the recipient to refund the excess amount in the form of credit. Ardoino emphasized that Bitfinex’s systems are configured to effectively thwart such exploit attempts on the XRP Ledger.
In response to Whale Alert’s misinterpretation of the significant transaction, Nik Bougalis, a cryptographer and former executive at Ripple Labs, provided a more accurate depiction of the exploit attempt.
He clarified that the transaction did not involve the transfer of 25B XRP, as Whale Alert’s code misunderstood the nature of the transaction, leading to inaccurate reporting. In reality, it was a partial payment, and only a nominal amount was transacted—just a few cents.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
