A recent malfunction involving BitGo, a well-known digital asset custodian, caused a surge of failed transactions on the XRP Ledger after one of its wallets ran out of XRP. The issue briefly disrupted normal activity across the network before being corrected.
Automation Error Triggers Network Disruption
The incident began when BitGo’s automated account management system continued to issue new account creation requests even after the wallet’s balance reached zero. On the XRP Ledger, activating a new account requires a base reserve of one XRP, and transactions that do not meet this requirement are automatically rejected.
However, the automation did not stop despite the insufficient balance, leading to thousands of consecutive failed transactions.
Blockchain explorers recorded a sharp rise in “UNFUNDED_PAYMENT” entries, indicating a high number of unsuccessful operations. Activity metrics showed that the number of attempted account activations spiked to roughly 11,000 in a single day, far above normal levels.
Something interesting on chain. I'm not sure yet who is behind it.
> BitGo activating thousands of XRP accounts in masses the past couple days.
> Account Set tx spike
> Multi Sig tx spike
There's a story here. pic.twitter.com/QWPEsSfJsy
— Vet 🏴☠️ (@Vet_X0) November 7, 2025
The accumulation of failed entries temporarily congested network trackers, though the ledger’s consensus and transaction integrity remained intact.
Community and Developer Response
Community members quickly noticed the anomaly. XRPL contributor “Vet” drew attention to the abnormal pattern of account creation attempts and speculated that a coding oversight might have caused the continuous transaction loop. Within hours, developers confirmed that the excessive activity originated from BitGo’s systems.
Following the detection of the error, BitGo initiated an internal review and determined that the cause was an automation fault rather than a security breach. The company later replenished the affected wallet with 1,048 XRP to restore functionality and prevent the system from issuing further unfunded payments.
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Once the deposit was made, the repeated failed transactions stopped, and normal operations resumed on the ledger.
The event serves as a reminder of the potential network-wide impact of automated processes that interact directly with public blockchains. Even minor scripting oversights can produce widespread operational effects if not properly safeguarded.
In this case, while no user assets were affected and no malicious activity occurred, the episode demonstrated how essential it is for custodial providers to maintain robust monitoring and fail-safe mechanisms.
At present, the XRP Ledger is operating normally, and BitGo’s systems have stabilized. The incident underscores the importance of proactive reserve management and effective error-handling protocols in automated wallet operations to ensure network reliability and prevent unnecessary transaction load.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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