BitGo, a leading crypto custodian, confirmed a temporary network disruption after one of its XRP wallets ran out of balance, triggering thousands of failed transactions across the XRP Ledger. The issue began late Tuesday when automated scripts continued to initiate payments despite insufficient funds, creating widespread transaction congestion across the network.
Network Congestion and Transaction Failures
According to on-chain data, the XRP Ledger briefly faced heavy congestion as the system attempted to process thousands of “UNFUNDED_PAYMENT” entries. While user assets remained secure, the failed transactions temporarily inflated network activity and slowed confirmation times. Analysts noted a short-lived spike in account creation metrics before the automation loop was halted completely.
Resolution and Future Safeguards
BitGo has since replenished the wallet and confirmed that the incident was due to an internal automation error, not a security breach. Normal operations have resumed, and the company stated it will implement stronger safeguards and enhanced monitoring to prevent similar disruptions in the future.
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.