A message from Beaxy regarding the XRP Partial Payment Exploit
By: T.J. Wilson
Tags: Finance, Ethereum, Cryptocurrency, Beaxy, Blockchain

Dear Beaxy User,

As you have likely heard by now, Beaxy experienced the XRP Partial Payment Exploit. We take this crime seriously. It was a crime against Beaxy, our team members, and most importantly you — our valued users.

We understand that a situation like this creates stress and anxiety about the safety of funds at Beaxy. Our brand has been built on a foundation of trust with our users, and we assure you that the cause of this issue has been addressed and you can trade with confidence at Beaxy.

We want you to know a few important things:

Through the XRP exploit, a malicious actor was able to credit their account with funds despite not actually having deposited these funds. This led to an illegitimate sell-off in BTC. The user was then able to withdraw approximately 44 BTC and 110,000 XRP, a total estimated value of $570,000 the day on which it occurred.

User account balances were unaffected as Beaxy funded the stolen tokens from its reserve.

Beaxy has more than enough funds on hand to continue to fully fund our reserves, our current operations, and our future development roadmap.

We take this matter very seriously and are working with law enforcement to bring those responsible to justice.

We’re working as fast as we can to get you the information you need. Our users are always the first priority.

Our roadmap and business plans remain on course and unaffected.

It is important to note that there was no single transaction that we can point to that would summarize this event. Over a 2 hour period, many transactions occurred that were used to take advantage of the XRP partial payment exploit. Given that large legitimate XRP wallet movements were coinciding with the event, and curious activity was underway on other exchanges, speculation was to be expected.

As the investigations into the bad actors involved prevent us from commenting further, we remain committed to establishing the premier marketplace for exciting, cutting edge projects and digital assets. To that end, we remain committed to our communities and providing platforms for our users to engage in robust conversation. That open dialogue can lead to unfounded speculation and we remain committed to setting the record straight.

The adverse financial impact to Beaxy is public record and was well known to the community after the events transpired, hence we felt it was unnecessary to add these details initially. Again, user account balances were unaffected as Beaxy funded the stolen tokens from its reserve. Beaxy was the first to detect and report the issue to its users. Since then, we have implemented solutions to prevent such exploits in the future.

All things considered, our users appreciated the way we handled the situation.

In fact, we’ve always aimed to do right by users. Here are some of the things we’ve done in the past to that end.

Cut our total token supply in half

Implemented over 60+ user suggested features

Awarded tokens and feature prioritization to bug testers

Gifted users BXY for a balance issue

Maintained a 93% customer service rating

Maintained average sub 1 hour response time

Gifted boosted accounts & other rewards to the community

Additionally, we’re going to do an AMA on Thursday (8/29) at 6 PM UTC. Feel free to post your questions in the AMA channel in our Discord and we will get to all of them as best we can.

Thank you for your patience, understanding, and loyalty to Beaxy!