XRP News : Bitfinex Successfully Defends Against Massive $15 Billion XRP Cyberattack

The post XRP News : Bitfinex Successfully Defends Against Massive $15 Billion XRP Cyberattack appeared first on Coinpedia Fintech News

Bitfinex, a prominent cryptocurrency exchange, has successfully neutralized an audacious attack targeting $15 billion worth of XRP tokens. This attempted exploit, which sought to leverage a “Partial Payments Exploit,” was foiled by the exchange’s adept handling of critical transaction data.

The Attempted Exploit

Whale Alert, a renowned blockchain tracking service, initially reported an eye-catching transfer of 25.6 billion XRP, which constitutes nearly half of the circulating supply, from an anonymous wallet to Bitfinex. The transaction, later confirmed as part of the attempted exploit, sent ripples across the cryptocurrency community.

Paolo Ardoino, CTO of Bitfinex, took to social media to clarify the situation. He revealed that the exchange was targeted by an attacker who presumed Bitfinex’s software was susceptible to a “Partial Payments Exploit.” This exploit technique banks on the premise that a company’s system only recognizes the “amount” field in an XRP transaction, disregarding the actual transferred amount.

Someone attempted to attack @bitfinex via "Partial Payments Exploit".
Attack failed since Bitfinex properly handles 'delivered_amount' data field.https://t.co/EiGw9UQmmq

(updated with better gif) https://t.co/8I7vlO05ou pic.twitter.com/DxOnJLLkhU

— Paolo Ardoino (@paoloardoino) January 14, 2024

How Bitfinex Averted the Crisis

Bitfinex’s effective management of the ‘delivered_amount’ data field was pivotal in preventing the attack. By accurately processing this field, the exchange prevented the attacker from deceiving the system into crediting an amount far exceeding the actual value transferred.

Blockchain data also unveiled that Binance, another leading exchange, was also targeted in a similar manner with a colossal transfer of 58.9 billion XRP. However, this attack, too, was unsuccessful.

Adapting to Regulatory Shifts

Bitfinex’s proactive approach to regulatory compliance was evident in their recent announcement. The exchange’s UK subsidiary implemented significant changes, mandating new customers registered after November 1, 2023, to comply with updated account verification policies. These measures restrict verification to “High Net Worth” individuals, reflecting a diligent response to evolving UK laws.

Existing customers faced additional limitations starting January 10, including restrictions on new deposits and trading activities. However, Bitfinex ensured continued support for these customers, facilitating withdrawals and position adjustments.