XRP Ledger Foundation fixes $3.5 million crypto backdoor breach

The XRP Ledger Foundation has detected and resolved a critical security flaw in its official JavaScript library used for interacting with the XRP Ledger blockchain network.

On April 22, blockchain security firm Aikido disclosed that attackers had compromised the open-source package by inserting a backdoor aimed at stealing private keys and accessing cryptocurrency wallets.

While the vulnerability did not affect the XRP Ledger blockchain itself, the library is widely integrated into hundreds of thousands of apps and websites, raising concerns of a major supply chain attack within the crypto ecosystem.

The Foundation quickly updated the library’s code repository to remove the malicious version, according to a statement on X.

Projects like XRPScan, First Ledger, and Gen3 Games confirmed they were unaffected by the compromised package.

Despite the security incident, XRP (CRYPTO:XRP) ended the US trading day up over 3.5 percent, with a market capitalisation above $125 billion and a fully diluted valuation near $215 billion, according to CoinGecko.

The XRP Ledger, launched in 2012, is one of the oldest blockchain networks and is designed for payment processing and decentralised finance, especially for institutional users.

The network has seen increased adoption amid a more supportive US regulatory climate, fueling renewed institutional interest in XRP-based projects.

Following the 2024 US presidential election, XRP’s price surged more than 300 percent as investors responded to shifting policy signals.

Asset managers have since filed requests with the US Securities and Exchange Commission to approve XRP-based exchange-traded funds.

Coinbase also expanded institutional access by launching XRP futures contracts on its US derivatives platform on April 21.