Hacker’s Fails To Steal Over $15 Billion in XRP From Bitfinex
In a recent turn of events, Bitfinex, a prominent cryptocurrency exchange, thwarted a hacking attempt that aimed to steal over $15 billion in XRP, half of the cryptocurrency’s total value. The news was revealed by Bitfinex’s CEO, Paolo Ardoino, who detailed the hackers’ failed attempt to exploit their system using a feature of the XRP Ledger network.
The hackers attempted to move nearly $15 billion in XRP, but the actual transaction amounted to just a few cents of XRP. The attempt failed because the sender did not have sufficient funds to carry out the transactions.
The hackers’ strategy was likely to deceive Bitfinex into believing the transfer was legitimate, potentially leading to a successful hack. However, Bitfinex’s system identified the transfer as a “partial payment,” a feature in the XRP Ledger where payments can be reduced.
Ardoino elaborated on the incident on social media, stating that the attack attempted to exploit the “Partial Payments Exploit” but was unsuccessful. Partial payments are designed to return payments inexpensively but can be misused. If a financial organization assumes that the full amount in a Payment field is always received, it can be tricked into losing money.
This incident underscores the persistent security issues in the cryptocurrency market. In 2023 alone, nearly $2 billion was lost to scams and hacks, highlighting the importance of robust security measures and constant vigilance. Bitfinex has experienced security breaches in the past, such as the 2016 hack, where over 119,000 bitcoins were stolen.
One of the key security features that Bitfinex uses is the identification of suspicious transactions, which neutralizes the threat. Bitfinex also has a bug bounty program, which rewards the responsible disclosure of security vulnerabilities on the Bitfinex platform. This encourages users and security researchers to actively look for potential security issues and report them, helping to improve the overall security of the platform.
Bitfinex has achieved SOC 2 compliance in 2022, an industry standard that verifies the existence of internal controls designed and implemented to meet security requirements. This independent validation of security controls is crucial for companies that operate to high standards of data protection and security.
Bitfinex’s successful thwarting of this hacking attempt serves as a reminder to other exchanges and financial institutions of the importance of robust security systems and the need to stay one step ahead of potential hackers. As the value and popularity of cryptocurrencies continue to rise, so too does the incentive for hackers to exploit any potential vulnerabilities.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information