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BitFinex Successfully Foils Attempted 15B Dollar XRP Cyberattack

Key Takeaways
  • Thwarted a $15 billion XRP attack with adept handling of transaction data, showcasing resilience.
  • Binance faced a similar attack, but robust security measures prevented the exploit, highlighting industry-wide resilience.
  • Bitfinex's UK subsidiary enforces new policies post-November 2023, exclusively for "High Net Worth" individuals, reflecting adaptability to evolving regulations.
15-Jan-2024 By: Sudeep Saxena
BitFinex Successfull

Bitfinex's Adept 'Delivered Amount' Handling Thwarts Attack

Bitfinex, a prominent cryptocurrency exchange, has successfully thwarted a bold attack aimed at compromising $15 billion worth of XRP tokens. The audacious exploit, which sought to exploit a "Partial Payments Exploit," was effectively neutralized through the exchange's adept management of critical transaction data. Recently, Levana Protocol has also faced DeFi attack, but they have swiftly tackled it.

Whale Alert, a well-known blockchain tracking service, initially detected a noteworthy transfer of 25.6 billion XRP, accounting for almost half of the circulating supply, from an anonymous wallet to Bitfinex. This transaction, subsequently confirmed as part of the attempted exploit, triggered significant reactions within the cryptocurrency community.

In response to the incident, Paolo Ardoino, CTO of Bitfinex, addressed the situation on social media. He clarified that the exchange had been targeted by an attacker who presumed that Bitfinex's software was susceptible to a "Partial Payments Exploit." 

This exploit technique relies on the assumption that a company's system only recognizes the "amount" field in an XRP transaction, disregarding the actual transferred amount. Bitfinex's adept handling of critical transaction data played a crucial role in foiling the attack. Apart from this, DeFi hacks and security challenges are becoming a real concern nowadays. 

How Bitfinex Safeguard Themselves From This Crisis

Bitfinex's adept handling of the crucial 'delivered_amount' data field played a pivotal role in thwarting the recent attack on the exchange. By accurately processing this field, Bitfinex effectively prevented the attacker from manipulating the system into crediting an amount far surpassing the genuine value transferred in the attempted exploit.

In a parallel incident, Binance, another leading cryptocurrency exchange, found itself targeted in a similar manner with an enormous transfer of 58.9 billion XRP. Despite the scale of the attack, Binance's robust security measures proved successful, and the attempted exploit on the exchange was ultimately unsuccessful.

Bitfinex's Proactive Compliance Initiatives

In a recent announcement, Bitfinex showcased its proactive stance towards regulatory compliance, particularly evident in the actions taken by its UK subsidiary. The subsidiary implemented substantial changes, mandating that new customers registering after November 1, 2023, adhere to updated account verification policies. 

These policies, which now exclusively apply to "High Net Worth" individuals, underscore Bitfinex's diligent response to the evolving regulatory landscape in the United Kingdom.

Effective January 10, existing Bitfinex customers encountered additional limitations, including constraints on new deposits and trading activities. However, Bitfinex ensured that ongoing support persisted for these customers, facilitating withdrawals and allowing for position adjustments amid the evolving regulatory framework.

Also Read: The Parallel Lives of Bankman-Fried and Do Kwon

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