Top Crypto Exchange Runs out of XRP, and This Happens Next
BitGo, a crypto custodian, accidentally caused a disruption in the XRP Ledger by running a faulty script that repeatedly attempted to create new XRP accounts after its wallet ran out of funds. The automation error led to thousands of 'UNFUNDED PAYMENT' transactions, temporarily cluttering the network. The issue was detected by XRPL contributor 'Vet.' BitGo confirmed the problem was caused by an internal automation misfire and not a security breach. The account balance was restored to prevent further issues. The incident highlights how a single faulty script can impact blockchain activity.
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Introduction: A Strange XRP Ledger Glitch
What started as a typical account script turned into one of the strangest XRP Ledger glitches of the last few months. BitGo, a popular crypto custodian and wallet provider, accidentally released a flood of failed XRP transactions after one of its accounts ran out of balance.
The Issue: Automation Gone Wrong
The issue began when BitGo's automation attempted to activate new XRP accounts, each requiring the standard one XRP reserve fee. However, once the wallet's funds were depleted, the process did not cease. Instead, the script entered what appeared to be an endless loop, sending small payments that could not be covered.
Soon, on-chain trackers became inundated with thousands of UNFUNDED PAYMENT entries. This cluttered the ledger's mempool with numerous rejected transactions and drew attention to the unusual activity.
Community Reaction: 'Infinite While Loops'
One XRPL contributor, known as 'Vet', was among the first to notice something peculiar. They humorously commented, "Lmao turns out BitGo just had a rogue script and now spams the ledger with failed transactions. Because their account ran out of XRP 😭. Devs made infinite while loops 🔁."
This reaction was shared along with screenshots of the incident, highlighting how account-creation metrics briefly spiked to 11,000 in a single day before falling as the wallet balance hit zero.
BitGo Addresses the Mistake
After conducting an investigation, BitGo confirmed the issue as an internal automation error, clarifying that it was not a security breach. The company resolved the problem by restoring the affected account and adding 1,048 XRP to its balance, preventing further failed transactions.
Broader Implications and Conclusion
This incident highlights how a single faulty script can disrupt blockchain activity, even on a robust network like XRP Ledger. Fortunately, the ledger has returned to normal, and the rogue process attempting to send 1.2225 XRP has finally ceased.