Ripple's XRP Price Tanks by More Than 60 Percent on Beaxy Exchange. Here’s Why

Libra Coin News
Tue, 08/13/2019 - 06:15
Alex Dovbnya
Beaxy has identified that the sudden sell-off was caused by a long-time XRP vulnerability
Cover image via www.123rf.com
Contents

Ripple’s native token XRP has plunged by more than 60 percent on the Beaxy cryptocurrency exchange.

According to the company’s blog post, all trades and withdrawals have been suspended due to suspiciously high volume activity on the XRP/BTC trading pair.

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It's not a bug, it's a feature

Later, Beaxy explained that it was targeted by bad actors who exploited the tfPartialPayment vulnerability. It allows making payments even without the sufficient amount of XRP in your wallet.

The delivered_amount metadata field displays the actual value of the transaction, but it gets overlooked by the vulnerable merchants/institutions that only pay attention to the transaction's Amount field.

Beaxy claims that it will roll back all relevant trades and credit funds misappropriation. In addition, the exchange will take legal action against those who were involved in the attack.

Getting back on track

Beaxy was launched on June 11 after onboarding more than 60,000 users around the globe. Because of its collaboration with OneMarketData, it is able to execute more than 225,000 transactions.

The exchange suffered a security breach back in May, but no funds or sensitive data have been stolen.

For the time being, Beaxy will freeze all activities until they clear up the black swan situation.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.


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