Hex Trust Confirms wXRP Tokens Safe After Kelp DAO Hack

Hex Trust, a leading digital asset custodian, has assured users of its wXRP tokens that they were not impacted by the recent $292M Kelp DAO hack. The company's robust validator setup and asset isolation measures ensured that the wrapped XRP tokens remained isolated from the compromised pathway.

In a statement, Hex Trust explained that the attack targeted rsETH through a LayerZero bridge, which did not affect its own system. The company's validator setup uses multiple decentralized verifier networks for transaction approvals, preventing any single point of failure that affected Kelp DAO. Additionally, none of Hex Trust's verifier networks experienced compromise during the exploit.

Hex Trust has emphasized that it securely holds underlying XRP assets in regulated custody environments and does not store these assets on cross-chain bridges. This ensures that the exploited bridge had no access to the reserves backing wXRP tokens. The company also reaffirmed that every wXRP token maintains a strict one-to-one backing with XRP, ensuring transparency and consistency across the token supply.

As a precautionary measure, Hex Trust has paused its bridge operations while reviewing its configurations to strengthen existing safeguards. This move reflects a broader effort to maintain system integrity amid rising DeFi security concerns.