BitGo Drains XRP, Spams Ledger via Unfunded Transactions
BitGo, a major crypto custodian, inadvertently ran out of XRP in an automated wallet account. The script continued attempting to create new XRP accounts, each requiring a 1 XRP reserve. Once the account balance hit zero, it entered an endless loop of small “UNFUNDED PAYMENT” transactions. The XRP Ledger’s mempool became clogged with thousands of failed payments. On-chain metrics spiked as account creation attempts surged past 11,000 in a single day. BitGo later confirmed the incident resulted from an internal automation misfire, not a security breach. The company restored the affected wallet, topping it up with 1,048 XRP, which stopped further failed transactions. The XRP Ledger soon recovered, with network activity returning to normal. This event underscores how a single faulty script can disrupt blockchain performance. Traders should monitor on-chain activity and reserve balances to prevent similar issues.
Neutral
The incident was a technical glitch rather than a security breach or market-driven event. It temporarily clogged the XRP Ledger with failed transactions but was resolved quickly by topping up the account. Similar past ledger spam incidents (e.g., Ethereum spam attacks) caused temporary network slowdowns without lasting price impacts. Traders are unlikely to adjust positions solely based on this automated script error. In the short term, network users may face minor delays, but the XRP price remains unaffected. Long-term confidence in the ledger’s resilience could even be strengthened by the swift resolution, suggesting a neutral market impact.