x402 Ecosystem Faces Security Risks Amid Rapid Crypto Growth

DeFi Planet2025/11/17 18:54
By:DeFi Planet
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Quick breakdown

• The x402 ecosystem gains support from Coinbase and Google, driving rapid crypto adoption.
• Security risks include excessive authorization, honeypots, signature replay, and unlimited minting.
• Recent exploits show high-risk early-stage projects; investors urged to stay cautious.

The x402 open payment protocol,supportedby major players such as Coinbase and Google, is gaining momentum in the cryptocurrency space, evolving from a technical standard into a rapidly expanding ecosystem. The protocol revives the HTTP 402 “Payment Required” code and has seen surges in market cap and trading volume as developers launch a wave of ecosystem projects. 

— GoPlus Security 🚦 (@GoPlusSecurity) November 17, 2025

However, its rapid growth has introduced significant security risks, especially as the community increasingly pursues high-risk MEME coins that leverage x402 features.

Major vulnerabilities highlighted by security audits

Security audits conducted by GoPlus Security have identified significant vulnerabilities across multiple x402 projects. Key risk types include excessive authorization, which allows contract owners or admins to move user tokens without restriction; signature replay, enabling attackers to reuse cryptographic signatures for unauthorized transactions; honeypots, contracts that trap user funds while appearing exploitable; and unlimited minting, which can inflate token supply and destabilize markets.

Recent exploits underscore the risks

The sector’s vulnerabilities have already led to notable incidents. On October 28, the x402 cross-chain protocol, 402Bridge, suffered an excessive authorization exploit, resulting in the malicious withdrawal of USDC from over 200 user accounts. On November 12, Hello402 experienced issues with unlimited minting and centralization, leading to liquidity shortages and token price declines.

GoPlus Security’s AI-powered audit scanned over 30 x402 projects across Binance Wallet, OKX Wallet, and community-reported platforms. Findings revealed critical flaws in projects such as FLOCK, x420, U402, MRDN, and PENG, including unrestricted token transfers, bypassed allowance checks, and unlimited minting capabilities.

As x402 continues to grow within the crypto ecosystem, experts warn investors to exercise caution. The protocol also promises innovation in decentralized payments and open financial applications. GoPlus Security emphasizes that early-stage projects in the sector carry high risk, making security diligence essential for users and developers alike.

Notably, Illicit cross-chain crypto activity has surged,reachingover $21 billion as of May 2025, a threefold increase from $7 billion in 2023, according to Elliptic’s Cross-Chain Crime Report. This trend highlights the importance of vigilance as the x402 ecosystem continues to expand.

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Disclaimer: The content of this article solely reflects the author’s opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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