- An attacker drained 99.7% of the XRP reserve backing the Coreum cross-blockchain bridge on August 9.
- The Hacker fooled relayers into authorizing real withdrawals by conjuring fake deposit evidence, never needing to steal a private key.
- TX, which absorbed Coreum and Sologenic, confirmed the incident and admitted a complaint had gone to the FBI.
- Bridged XRP on the tx chain is not currently fully backed, and XRP’s price dipped below $1 for the first time since November 2024.
An attacker drained 99.7% of the XRP reserve backing the Coreum cross-blockchain bridge on August 9 by presenting fake evidence of deposits that convinced the bridge’s operators to authorize real withdrawals. The attacker stole 199,916 XRP worth over $200,000 across 94 transactions, each carrying a majority of signatures from the bridge’s own relayers.
The relayer software only required a valid memo to authorize withdrawals, but it never verified the destination of the payment. A seemingly valid memo existed, yet the destination was the hacker’s wallet, and all relayers signed off because they ran the same buggy code.
Hours later, Coreum discovered it held just 493 XRP worth roughly $500. TX, a brand that absorbed both the Coreum and Sologenic communities in February, confirmed the incident and admitted the software “incorrectly registered transactions that never actually delivered any XRP to the bridge as deposits, and minted bridged XRP on the tx chain against them.”
The same statement said the bridge had undergone “multiple internal and third-party audits prior to deployment.” It also conceded that bridged XRP on the tx chain “is not currently fully backed,” and confirmed a complaint had gone to the FBI.
The price of XRP dipped below $1 yesterday, its first sub-dollar print since November 2024, and the coin has lost 45% of its value this year. For more informed news and investigations, follow us on X, Google News, or subscribe to our YouTube channel.
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