An attacker exploited a software vulnerability to create counterfeit XRP on a different blockchain, exchanging it for genuine XRP held in reserve. The bridge is now suspended, and a complaint has been lodged with the FBI.
By Shaurya Malwa27 min ago2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on XRP bridge loses $200,000 due to software error. (Unsplash)SummaryShow- Approximately 200,000 XRP, valued at around $200,000, were siphoned from a bridge that connects the XRP Ledger to the tx blockchain after a software vulnerability was exploited.
- The flaw allowed the bridge to acknowledge non-existent deposits as valid, leading to the issuance of unbacked XRP, which the attacker then withdrew as real XRP from the reserve.
- Tx has suspended the bridge, corrected the vulnerability, engaged blockchain forensic experts, and reported the incident to the FBI, but has not clarified how it will compensate affected users.
An XRP bridge lost nearly 200,000 XRP, approximately worth $200,000, due to a software vulnerability that enabled an attacker to claim fake deposits and subsequently withdraw legitimate tokens.
This bridge linked the XRP Ledger to Coreum, a blockchain that rebranded to tx in March and focuses on tokenizing tangible assets. The theft occurred within 97 minutes on August 9, before the bridge's operations were halted.
The bridge functions similarly to a vault with a receipt system: a user deposits XRP into a reserve wallet on the XRP Ledger, and the equivalent amount of bridged XRP is created on the other blockchain. When users return those tokens, they can withdraw the actual XRP stored in the reserve.
The attacker discovered a method to generate receipts without making actual deposits into the vault.
According to tx, the software mistakenly registered transactions as deposits even when no XRP was sent to the bridge, allowing the attacker to receive bridged XRP on the tx blockchain without the real XRP backing it. These unbacked tokens were then funneled back through the bridge, allowing the attacker to withdraw genuine XRP.
How the lack of a verification check allowed an attacker to withdraw XRP that was never deposited. (Shaurya Malwa/CoinDesk)The unauthorized withdrawals commenced at 19:16 UTC, with each transaction approved by 17 of the bridge's 28 relayers, who acted according to the system's records indicating that the deposits were legitimate.
Relayers are programs that monitor both blockchains and authorize transfers when the bridge's records indicate a withdrawal is due.
The root cause of the issue was deeper within the relayer code, which processed payments with the bridge's memo without verifying the destination address beforehand.
Tx acknowledged the deposit detection flaw in a recent update, stating that the attacker took advantage of software that inaccurately recognized transactions that did not deliver XRP to the reserve.
An update regarding the XRPL bridge incident.
— tx (@txEcosystem) August 11, 2026
On August 9, the tx XRPL bridge was exploited, resulting in XRP being drained from the bridge's reserve wallet on the XRP Ledger. The bridge has been suspended, the vulnerability identified, and all possible remedies are being considered. This…
The project confirmed that it has identified and rectified the vulnerable code, enlisted blockchain forensic specialists, and filed a report with the FBI's Internet Crime Complaint Center. However, it has not disclosed how it intends to reimburse affected users.
In the meantime, the stolen XRP has been quickly transferred through several other addresses, as on-chain tracking indicates.
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