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BitGo Wallet Glitch Floods XRP Ledger with Failed Payments

BitGo Wallet Glitch Floods XRP Ledger with Failed Payments

Coinpedia2025/11/12 13:51
By:Coinpedia
Story Highlights

The XRP Ledger (XRPL) has been buzzing with unusual activity after one of BitGo’s wallets displayed behaviour many found unexpected. The sudden behaviour caught the attention of blockchain watchers and raised questions about what was happening behind the scenes.

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Here’s what went wrong.

Over the past few days, XRPL users noticed an unusual spike in activity from BitGo’s “Initialization Wallet”, which was used to activate the Evernorth address. The wallet kept on creating and activating new XRP addresses automatically.

BitGo Initialization Wallet (Self-custody) is back in business and creating more wallets after receiving funds. I'm thinking not an accident. Need to finish the job for whats coming???? pic.twitter.com/n6aUrNK5et

— XRP_Liquidity (Larsen/Britto/Escrow/ODL/RLUSD) (@XRPwallets) November 12, 2025

Each account needed a small reserve of one XRP to activate. But when the wallet’s balance hit zero, the process did not stop and it kept on trying to send endless payment attempts that could not be completed.

As a result, the XRP Ledger got flooded with thousands of failed transactions labeled “UNFUNDED PAYMENT,” cluttering the network. Over just a few days, thousands of new XRP accounts were being created, with the number jumping to around 11,000 in a single day. 

XRPL dUNL validator Vet was the first to raise the alarm.

“BitGo just had a rogue script and now spams the ledger with failed transactions. Because their account ran out of XRP,” he said. Vet joked saying “the devs made infinite while loops.”

In an earlier post , Vet had pointed out that BitGo had been creating a large number of new XRP accounts recently, with a sudden increase in specific types of transactions, such as AccountSet and Multi-Signature transactions. 

He had said that there might be an interesting story behind this sudden surge in activity.

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BitGo quickly responded on X thanking Vet for bringing the issue to their attention and confirming that their team was already investigating the matter.

The most recent update shows that BitGo’s self-custody “Initialization Wallet” is active again and creating more wallets after getting funded.

BitGo Initialization Wallet (Self-custody) is back in business and creating more wallets after receiving funds. I'm thinking not an accident. Need to finish the job for whats coming???? pic.twitter.com/n6aUrNK5et

— XRP_Liquidity (Larsen/Britto/Escrow/ODL/RLUSD) (@XRPwallets) November 12, 2025

This incident shows how a faulty script can disrupt activity across an entire blockchain.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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