Get €3000XRP News: Validator Warns wXRP on Solana Faces Risk Similar to $292M KelpDAO Hack
Highlights
- An XRPL validator noted that wXRP on Solana carries a counterparty risk.
- He likened the security concerns to that of the KelpDAO hack, which drained over $292 million on Saturday.
- Aligning with his belief, Flare has paused FXRP OFT rail following the incident.
The exposure of Wrapped XRP (wXRP) on Solana could lead to potential attacks in the future, experts believe. The XRP news centers on the risks connected to the recent $292 million exploit that impacted KelpDAO’s rsETH token.
XRP News: Why Solana’s wXRP Is Exposed To Attacks
The warning sent by the XRP Ledger validator, VET, on X noted that issued assets are associated with structural risks related to intermediaries and cross-chain infrastructure. He added, “Reminder with KelpDAO token hack via LayerZero, issued assets have REAL counterparty risk!”
In the XRP news today, the validator referred to wXRP that went live on Solana apps this week. He noted that while it’s good to have exposure to Ripple’s XRP in this form, it raises security concerns. The validator added, “wXRP is an issued asset, it doesn’t come close to holding native XRP via self custody from a risk POV.”
Vet declared, “Know what you hold.” The comment appears as wXRP continues to gain momentum to offer XRP exposure on the Solana ecosystem. Earlier this week, the market hype surged as Solana teased potential XRP collaboration and later executed it.
All About KelpDAO’s $292M Hack
The cautionary XRP news update comes after a huge attack on KelpDAO. Onchain records show losses of up to $292 million. The attacker reportedly mined 116,500 of rsETH, a liquid restaking token. They then used this stash as collateral on lending platforms, including Aave v3, to borrow ETH and WETH.
These funds were then transferred via Tornado Cash, which hides transaction trails. KelpDAO released an update: “Earlier today we identified suspicious cross-chain activity involving rsETH. We have paused rsETH contracts across mainnet and several L2s while we investigate.” The team added it is working with LayerZero, Unichain, and security experts to assess the situation.
After the hack, protocols related to cross-chain assets started to implement precautionary steps. In another XRP news, Flare has put out a statement that there is a temporary suspension of FXRP bridging activity.
The team posted, “As a precautionary measure, we are temporarily pausing FXRP cross-networking via OFTs between Flare, Ethereum, Base, and other supported networks.” The pause is in effect while the rsETH incident investigation continues, which echoes Vet’s sentiments. The update also mentioned, “Users holding FXRP on non-Flare networks cannot currently redeem.”
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