The IoTeX blockchain network has recently experienced a shocking exploit. In this respect, the IoTeX Bridge has undergone a hack that has drained more than $8M in crypto. As per the data from PeckshieldAlert, the security breach took place due to the compromise of a private key. Hence, the exploiter got the permission to take away the funds and swapped them into Ethereum ($ETH) to subsequently bridge them to Bitcoin ($BTC).
Private Key Compromise Results in $8M IoTeX Bridge Hack
IOTEX has officially tweeted about this attack. The hack paved the way for the exploitation of up to $8M following a private key compromise. The market data reveals that the hacker rapidly swapped the stolen tokens into Ethereum ($ETH). Without any further delay, the attacker started bridging the assets to Bitcoin ($BTC). For this purpose, the hacker leveraged Thorchain.
The respective exploit has triggered concerns among the crypto community members, indicating the current vulnerabilities that the cross-chain bridges face. In addition to PeckShieldAlert’s report, IoTex has also confirmed being aware of the incident dealing with a token safe. At the same time, the company also assured the consumers that it had taken control of the situation. Along with that, it asserted that the losses are notably lower than the widespread rumors based on the initial estimates.
$IOTX Token Dip 9% after Exploit
Moreover, IoTeX pointed out that the swift coordination with its security partners and exchanges played a crucial role in overcoming the challenging situation. Due to the hack, the $IOTX token has witnessed a sharp plunge to $0.004909. This suggests a 9.15% dip over the past 24 hours. Overall, this exploit is a stark reminder of the vulnerabilities of the blockchain projects amid the growingly sophisticated attacks, indicating the need for robust security advancements to prevent such incidents in the future.
Source: https://blockchainreporter.net/iotex-bridge-exploit-drains-8m-after-private-key-compromise/
