Home News Months-Old Exchange Beaxy Targeted With XRP Partial Payment Exploit, Vows to Rollback...

Months-Old Exchange Beaxy Targeted With XRP Partial Payment Exploit, Vows to Rollback Trades

TL;DR: Only months-old exchange Beaxy has been targeted with an XRP (the cryptocurrency associated with Ripple) partial payment exploit, according to the company. They’ve since halted trading, vowing to eventually roll impacted trades back, and are crediting know-your-customer (KYC) policies with a supposed method of tracking down the exploit’s perpetrators.   

Months-Old Exchange Beaxy Targeted With XRP Exploit

On 12 August 2019 at 23:00 UTC, Beaxy explained they “recently experienced [unusually] high volume activity on XRP-BTC. As a result and precaution, we are temporarily halting all trading activity and withdrawals across the exchange as we investigate,” pointing users to their Twitter account for updates.

Accordingly, at press time the most recent update read, “Exchanges were targeted with an $XRP partial payment exploit today,” though the company didn’t specify the others involved. “Beaxy was also targeted in this. We’ve identified and applied a fix. To move forward, we are rolling back relevant trades on the exchange to the moment it was identified.”

Beaxy
Statement from the exchange back in May shortly before its June launch.

Beaxy also claimed it would “credit any funds misappropriated,” acknowledging such an effort “will take some time to complete,” and how the exchange will still be open and activities frozen “as we work on reverting to the previous state.” The company credited KYC as allowing them “to identify participants in this incident & pursue action against” whoever participated in the exploit.” It’s actually their second hack or exploit since late May, when the Beaxy was reportedly compromised in pursuit of KYC data, but apparently managed to avoid much damage in that regard.

While the exchange this time around might have implied other exchanges were involved and that something native to an XRP wallet was to blame, commenters seemed less than convinced about either. “It is not an ‘xrp exploit,'” a critic insisted, “it’s a wrong installation of the wallet, meaning you didn’t read correctly how to install or followed any of the well documented instructions. You were vulnerable based on your own mistakes, not because of XRP.” Another asked, “What other exchanges? Seems like you are the only having this ‘exploit’ problem.”

DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH. 

BeaxyCONTINUE THE SPICE and check out our piping hot VIDEOS. Our podcast, The CoinSpice Podcast, has amazing guests. Follow CoinSpice on Twitter. Join our Telegram feed to make sure you never miss a post. Drop some BCH at the merch shop — we’ve got some spicy shirts for men and women. Don’t forget to help spread the word about CoinSpice on social media.

DYOR: CoinSpice is your home for just spicy crypto things. We’re not affiliated with any cryptocurrency project or token. Each published piece is intended for information purposes only, not investment advice and not in the hope of impacting speculative markets. There are plenty of trading sites and coin-specific advocacy journals out there, we’re neither. CoinSpice strives for rigorous accuracy in our reporting. Information presented here is contingent usually on a host of factors, and the ecosystem moves fast — prices change, projects change, and at warp speed. Do your own research.