XRP bridge drained $200,000 after software error misclassified fake deposits

A cross-chain bridge involving XRP was exploited for approximately $200,000 after software incorrectly validated unbacked tokens as legitimate deposits, according to a report published on Tuesday.

The attacker generated XRP on a secondary blockchain without corresponding reserves and exchanged it for real XRP held in the bridge’s custody. The transaction was processed due to a misclassification in the bridge’s validation software, which failed to distinguish between backed and synthetic assets.

The bridge operator suspended operations immediately following the exploit and filed a formal complaint with the Federal Bureau of Investigation (FBI). The incident has prompted an internal review of the bridge’s security protocols and validation mechanisms.

Cross-chain bridges, which facilitate the transfer of assets between different blockchains, have been frequent targets of exploitation due to vulnerabilities in smart contract logic and validation processes. This event underscores the ongoing risks associated with such infrastructure, particularly when automated systems misinterpret transaction data.

The operator did not disclose whether additional safeguards have been implemented to prevent similar incidents. Investigations by cybersecurity firms and law enforcement agencies are ongoing.