XRP Foundation Confirms SDK and Wallet Hack! Should Investors be Worried?

The security of the XRP Ledger (XRPL) ecosystem has recently been compromised by a critical vulnerability in its software development kit (SDK), exposing users and developers to potential risks. 

Software security firm Aikodo first discovered the breach on April 21, 2025, and alerted XRPL developers about the malicious backdoor that allowed hackers to steal private keys. 

This article will dive into the details of the hack, its potential impact, and what investors and developers should do moving forward.

XRP Foundation Confirms SDK and Wallet Hack?

Aikodo identified a serious vulnerability in the XRPL SDK versions 4.2.1 to 4.2.4, which had been compromised by bad actors seeking to exploit private key information.

The firm noticed the issue after five new packages were added to the XRPL package repository. A detailed investigation revealed that attackers had inserted a backdoor into the software, which could have allowed them to access cryptocurrency wallets and steal private keys.

The vulnerability is particularly concerning because the official XRP Ledger NPM (Node Package Manager) package has an average of 140,000 weekly downloads, and many popular websites and applications rely on it. 

The hack could have turned into a devastating supply chain attack, impacting thousands of crypto users globally.

Also Read: XRP Price Forecast for April 24

XRPL Foundation Responds Quickly

In response to the breach, the XRPL Foundation acknowledged the attack and took immediate action. 

The non-profit organization behind the XRP Ledger released a new version of the SDK, v4.2.5, to patch the vulnerability. They also deprecated the compromised versions on NPM, ensuring that no one could download them anymore.

The foundation urged developers to upgrade to version 4.2.5 or revert to the older, unaffected version 2.14.3. It clarified that the issue did not affect the XRP Ledger codebase or its GitHub repository, focusing only on the affected xrpl.js JavaScript library.

Which Projects Were Affected?

While the vulnerability had the potential to cause widespread damage, several projects have confirmed that they were either unaffected or had taken proper security measures.

For example, Xaman Wallet assured users that it uses its own infrastructure to handle private keys and transactions. 

Similarly, XRPScan stated that it uses an older version of xrpl.js that did not process private keys, thus remaining immune to the hack.

Other projects, such as Bitfrost Wallet, the DeFi protocol OpulenceX, memecoin RibbleXRP, and Web3 gaming platform Gen3 Games, confirmed that they had not been impacted by the security flaw.

Also Read: XRP News: New Approach in XRPL Integration

What Can Investors Do to Protect Themselves?

Investors who use the XRP Ledger or associated wallets should take the following precautions:

1. Update Your Wallets and SDKs: Developers should immediately upgrade to version 4.2.5 of the xrpl.js library. If you are using an older version, you must replace it to avoid potential risks.
2. Review Wallet Security: If you are an investor using wallets or platforms built on XRPL, make sure to follow any security updates or advisories released by your wallet provider. Some wallets, like Xaman Wallet, have confirmed that they were unaffected, so it’s crucial to stay updated.
3. Use Trusted Platforms: Ensure that your interactions are limited to verified and trusted applications and services that have taken measures to protect user data and assets.
4. Monitor Your Assets: Regularly monitor your wallets and assets for any unusual activity. If you suspect that your wallet may have been compromised, immediately transfer your assets to a secure location.

What Does This Mean for the Crypto Industry?

This incident highlights the growing concern around software supply chain attacks in the cryptocurrency space. 

While the XRP Ledger team responded swiftly to mitigate the damage, other platforms and ecosystems are likely to become targets in the future. Investors should be aware of these vulnerabilities and take proactive steps to safeguard their investments

Conclusion

The XRPL SDK hack underscores the importance of cybersecurity within the cryptocurrency industry. While the XRPL Foundation has taken swift action to address the issue, this event serves as a reminder for developers and investors to remain vigilant. 

By staying updated on security patches and following best practices, users can better protect their assets in an increasingly complex digital landscape.

FAQ

What is the XRP Ledger SDK vulnerability?

The vulnerability in the XRP Ledger SDK (versions 4.2.1 to 4.2.4) allowed hackers to insert a backdoor into the software, potentially stealing private keys and compromising user wallets.

Which versions of the XRP Ledger SDK were affected?

Versions 4.2.1 to 4.2.4 of the XRPL SDK were compromised. Developers using these versions should upgrade to 4.2.5 or revert to the older v2.14.3.

How do I protect my assets from this hack?

Developers should upgrade to the latest version of the SDK (v4.2.5), while investors should stay updated with their wallet provider’s security updates and regularly monitor their assets.

Is this a widespread issue for XRP users?

Not all projects were affected. Some platforms, such as Xaman Wallet and XRPScan, have confirmed they were not impacted due to using older or secure versions of the SDK.

What is a supply chain attack in crypto?

A supply chain attack targets software packages, like the XRPL SDK, in order to insert malicious code or vulnerabilities. These attacks often go unnoticed for a while, affecting multiple projects or users before being detected.