IoTeX Launches Investigation After Token Safe Breach; Analysts Estimate $4.3 Million Loss
The decentralized‑identity platform has mobilised its security team and partners to contain the incident, while on‑chain sleuths trace roughly $4.3 million of stolen assets.
Incident overview
On Saturday, IoTeX announced on its official X (formerly Twitter) account that an irregular transaction pattern had been detected in one of its token safes. The project said that its security team is “fully engaged, working around the clock to assess and contain the situation.” Early statements from the team suggest that the actual financial impact is lower than the more sensational rumors circulating in the community.
Analyst’s assessment
Independent on‑chain analyst known as Specter posted a detailed breakdown of the breach, indicating that a private key associated with the safe was likely compromised. According to Specter’s investigation, the wallet was drained of several assets—including USDC, USDT, IoTeX (IOTX) and wrapped Bitcoin (WBTC)—with an estimated total loss of approximately $4.3 million.
The stolen tokens were quickly swapped into Ether (ETH). About 45 ETH was subsequently bridged to the Bitcoin network, a move that typically aims to obscure the trail and make recovery more difficult. Specter also released the attacker‑related addresses and transaction hashes, showing rapid movement through decentralized exchanges and cross‑chain bridges.
Market reaction
The breach triggered a sell‑off of IOTX on the open market. Within 24 hours, the token’s price fell more than 8 percent, settling around $0.0049 per CoinMarketCap data. While the dip reflects heightened risk perception, the price has since shown signs of stabilising as the team continues to provide updates.
IoTeX’s response
IoTeX confirmed that it has coordinated with major cryptocurrency exchanges and external security firms to trace and, where possible, freeze the illicit funds. The project’s statement emphasised that the situation is “under control” and pledged regular communication with its community.
Broader context
Crypto‑related hacks remain a persistent threat. A recent Cointelegraph analysis highlighted that nearly 80 % of projects hit by major breaches never fully recover, often due to delayed or poorly managed incident response rather than the immediate loss of funds. Security experts such as Immunefi CEO Mitchell Amador and Kerberus CEO Alex Katz argue that early‑stage communication and decisive action are crucial to preserving user confidence and limiting long‑term reputational damage.
Key takeaways
- Compromised key: An on‑chain investigation points to a private‑key leak as the root cause of the breach.
- Estimated loss: Roughly $4.3 million in USDC, USDT, IOTX, and WBTC was moved out of the safe.
- Rapid asset conversion: The attacker swapped the assets to ETH and bridged a portion to Bitcoin to obfuscate the trail.
- IoTeX’s mitigation: The project is working with exchanges and security partners to freeze funds and monitor activity.
- Market impact: IOTX price dropped over 8 % in the aftermath, underscoring the sensitivity of token valuations to security events.
- Industry lesson: Prompt, transparent response and coordination with external security firms are increasingly recognised as essential for limiting damage and preserving credibility after a hack.
The situation remains fluid. IoTeX has promised further updates as the investigation progresses and as additional details about the recovered—or unrecoverable—funds become available.
Source: https://cointelegraph.com/news/iotex-investigates-token-safe-suspicious-activity-4-3m-loss?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
