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An XRP Ledger (XRPL) user holding $200,000 in XRP was locked out of his account after unknowingly creating a “nested multisign” setup, according to an incident shared by XRPL developer Wietse Wind.
Wind said the case came to his attention on Aug. 15, 2025, through his Twitter DMs, when a community member asked for help. The user had $200,000 in XRP in an XRPL account and configured multisign. He then also set up multisign for the accounts he used in the initial multisign arrangement.
Wind said the user unintentionally created a “nested multisign” configuration. While XRPL allows one to configure such a setup, it creates a condition that cannot be resolved: even if the user has access to the secrets belonging to the nested multisign accounts, XRPL will never accept the signatures due to the nested condition.
Wind noted that this issue cannot be fixed simply by XRPL Labs because “code is law,” and the XRPL code permits a configuration that results in a wallet being effectively locked out.
Wind said the only path to resolving the problem is through an amendment. Amendments are new features or other changes to transaction processing, and bug fixes that alter transaction processing also require amendments.
After discussing the issue with developers in the XRPL ecosystem and coding a solution, Wind said an amendment enabling nested signatures was created. The nested multisign amendment introduces nested multisignature validation, allowing signer lists to delegate signing authority to other accounts that themselves have signer lists.
Wind added that the amendment has been submitted to the rippled/XRPL code base. Once the code change is merged into a future release by RippleXDev and voted in by validators, the user with $200,000 XRP would be able to regain access to his funds.
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