XRP Ledger JavaScript Library Compromised, XRP Token Surges 300%

The XRP Ledger Foundation has identified a significant vulnerability in the official JavaScript library used for interacting with the XRP Ledger blockchain network. The nonprofit organization reported that the open-source JavaScript library, which enables developers to interact with the XRP Ledger, was compromised by sophisticated attackers who inserted a backdoor to steal cryptocurrency private keys and gain unauthorized access to cryptocurrency wallets.

On April 22, blockchain security specialist Aikido published a blog post detailing the discovery. The compromised JavaScript library is distinct from the blockchain network itself but is used by hundreds of thousands of applications and websites, making it a potentially catastrophic supply chain attack on the cryptocurrency ecosystem. The XRP Ledger Foundation has already taken action by upgrading the code repository to remove the previously compromised version, ensuring the security of the network.

Several XRP Ledger ecosystem projects, including XRPScan, First Ledger, and Gen3 Games, have confirmed that they were not impacted by the incident. This swift response from the XRP Ledger Foundation and the ecosystem projects highlights the importance of maintaining robust security measures in the cryptocurrency space.

Despite the security breach, the XRP token ended the US trading day with a significant increase, reflecting the market's confidence in the network's resilience and the foundation's prompt action. The token has a market capitalization of over $125 billion and a fully diluted value of approximately $215 billion, underscoring its prominence in the cryptocurrency market.

Launched in 2012, the XRP Ledger is one of the oldest blockchain networks, specializing in payments and decentralized finance (DeFi) applications for institutions. The network has been gaining prominence in recent months due to a more favorable US regulatory environment, which has paved the way for broader institutional adoption of the network’s token and ecosystem projects. The XRP token’s price surged by over 300% following the November presidential election, and several asset managers have since requested the US Securities and Exchange Commission (SEC) to approve US-listed exchange-traded funds (ETFs) holding the XRP token.