Bitfinex Successfully Thwarts Enormous $15 Billion XRP Cyberattack, Latest XRP News
Bitfinex, a well-known cryptocurrency exchange, has successfully thwarted a bold attack aimed at stealing $15 billion worth of XRP tokens. This audacious exploit, known as the “Partial Payments Exploit,” was cleverly foiled by Bitfinex’s skilled handling of critical transaction data.
The Attempted Attack
Whale Alert, a renowned blockchain tracking service, initially reported a remarkable transfer of 25.6 billion XRP, which accounted for nearly half of the circulating supply, from an anonymous wallet to Bitfinex. This transaction, later confirmed as part of the attempted attack, sent shockwaves throughout the cryptocurrency community.
Paolo Ardoino, the Chief Technology Officer of Bitfinex, took to social media to clarify the situation. He revealed that the exchange was targeted by an attacker who believed that Bitfinex’s software was vulnerable to the “Partial Payments Exploit.” This exploit relies on the assumption that a company’s system only recognizes the “amount” field in an XRP transaction, disregarding the actual amount transferred.
Someone tried to attack @bitfinex through the “Partial Payments Exploit”. The attack was unsuccessful because Bitfinex effectively handles the ‘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 Prevented the Crisis
Bitfinex’s adept management of the ‘delivered_amount’ data field played a crucial role in thwarting the attack. By accurately processing this field, the exchange prevented the attacker from tricking the system into crediting an amount that exceeded the actual value transferred.
Blockchain data also revealed that Binance, another leading exchange, was targeted in a similar manner with a massive transfer of 58.9 billion XRP. However, this attack was also unsuccessful.
Adapting to Regulatory Changes
Bitfinex’s proactive approach to regulatory compliance was evident in their recent announcement. The exchange’s subsidiary in the United Kingdom implemented significant changes, making it mandatory for new customers registered after November 1, 2023, to comply with updated account verification policies. These measures restrict verification to individuals classified as “High Net Worth,” demonstrating Bitfinex’s diligent response to evolving UK laws.
Existing customers faced additional limitations starting on January 10, including restrictions on new deposits and trading activities. However, Bitfinex ensured continued support for these customers by facilitating withdrawals and position adjustments.
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Ripple (XRP)