XRP Ledger developers have proposed four protocol fixes bundled into the network upgrade fixCleanup3_5_0 to close loopholes that allowed restricted tokens to enter accounts without issuer approval. The changes require both tokens in an automated market maker (AMM) pool to be approved before users can buy into the pool, and address a bug where approval checks were only triggered on zero-balance trust lines, allowing existing trust lines to receive additional unapproved tokens.
The XRP Ledger Foundation emphasized that this is routine protocol hardening rather than a security incident, with no reports of affected users. All existing unapproved balances originate from issuers or previously approved accounts, and no outside party has been found exploiting the remaining exceptions. Once activated, holders of unapproved restricted tokens will only be able to return them to the issuer, who can then approve the holder's trust line at any time to restore usability.
The four fixes have not yet been merged into the main software. After merging, activation on mainnet requires support from more than 80% of trusted validators over two consecutive weeks.
XRP Ledger Developers Propose Four Fixes to Close Restricted Token Approval Loopholes
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