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- Nidhi Kolhapur
Nidhi Kolhapur
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
- Reviewed by:
Zafar Naik - Nov 12, 2025 11:14 UTC
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BitGo Wallet Glitch Floods XRP Ledger with Failed Payments
BitGo’s wallet triggers unusual activity on the XRP Ledger.
Thousands of failed transactions labeled “UNFUNDED PAYMENT” flooded the network
XRPL validator Vet was first to spot the rogue script causing the disruption
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.
Here’s what went wrong.
Failed Transactions Spike on XRP Ledger
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.
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 Validator Vet Flags BitGo’s Rogue Script
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.
BitGo Responds to the Situation
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.
This incident shows how a faulty script can disrupt activity across an entire blockchain.
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FAQs
A BitGo wallet ran a faulty script that kept sending payments after running out of XRP, flooding the ledger with failed “UNFUNDED PAYMENT” errors.
BitGo’s “Initialization Wallet” was designed to activate new accounts, but a script error made it keep creating them automatically even with zero balance.
It highlights how even small coding errors can affect entire blockchains, showing the need for strict testing and monitoring of automated wallet scripts.
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