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.
Immediate impact: chain pause window, security upgrades, user checks and freezes
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.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- HashKey Prices IPO at High End, Raises $206 Million
- Capital A and Standard Chartered Explore Malaysia Stablecoin Launch
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- HashKey Prices IPO at High End, Raises $206 Million
- Capital A and Standard Chartered Explore Malaysia Stablecoin Launch
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- HashKey Prices IPO at High End, Raises $206 Million
- Capital A and Standard Chartered Explore Malaysia Stablecoin Launch
Latest
How the 2026 Memecoin Surge Reflects Crypto’s Decentralized Reset
Solana Defends Critical Support With Early Signs of Reversal: Is $90 the Next Target?
Press Release
AVATAR48 Redefines Intimacy with $AYA Launch on Virtuals; Onboards Global Icon Eimi Fukada
Phemex Completes Full Integration of Ondo Finance Tokenized Equity Suite
