IoTeX pauses chain 24–48h after validator key exploit

IoTeX paused after private key exploit; about $2M lost, resume in 48h

IoTeX contained a private key exploit that led to about $2 million in losses and paused chain operations for 24–48 hours to implement security upgrades, according to Bitget News. The team expects to restore operations within 48 hours once changes are deployed. The incident centers on a compromised key affecting critical infrastructure.

The project is the latest victim in an ongoing epidemic of compromised private keys in 2026, as noted by Binance’s community post. Such incidents undermine validator and bridge trust models across networks.

What happened and why it matters: validator key and bridge risk

As reported by BitcoinWorld, a stolen validator key enabled unauthorized activity on cross‑chain infrastructure, triggering a bridge incident estimated around $4.4 million, with recovery efforts and a user compensation plan underway. The pathway exposes how validator privileges and minting rights can cascade into asset drains if key custody is breached.

PeckShield confirmed the exploit and mapped at least three attacker addresses, supporting containment and freeze coordination. Multiple assets were implicated through bridge routes, according to public traces.

“We are still collecting data but the amount will be around ~$2M USD for now,” said Raullen Chai, co‑founder and CEO of IoTeX. He indicated operations would resume after attacker addresses are frozen.

Operations remain paused during the security upgrade window, with a targeted 24–48 hour resume timeline once freezes propagate through infrastructure. Coordination with exchanges and law enforcement is underway to restrict attacker movements, according to MEXC.

The immediate focus includes user‑side exposure checks and temporary freezes of suspicious flows while partner platforms update deposit and withdrawal status. This period is designed to prevent further leakage while patches harden validator and bridge controls.

User steps and loss reconciliation

How to assess exposure and compensation: TokenSafe, MinterPool, affected assets

Exposure assessment centers on interactions with TokenSafe and MinterPool, plus holdings in affected bridged assets identified in incident traces. Users with relevant transactions may need to align records with forthcoming reconciliations once final details are published.

The plan’s scope will determine eligibility and amounts after final incident validation and partner confirmations. Timelines and modalities are expected to reflect recovery progress.

Reconciling losses: Raullen Chai ~$2M vs on-chain analyst tallies

On‑chain analyst Specter tallied roughly $4.3 million drained across multiple assets. Differences with the ~$2 million figure reflect whether newly minted or deprecated tokens are counted and whether affected tokens are frozen, as reported by The Block.

At the time of this writing, IOTX trades near $0.0045, based on data from CoinGecko.

Operations are expected to resume within 24–48 hours after freezes and upgrades conclude, per prior statements.