IoTeX Investigates Token Safe Incident as Analysts Estimate $4.3M Loss
IoTeX is investigating suspicious activity involving a token safe after analysts estimated losses around $4.3 million from a compromised private key.Summary
Decentralized identity protocol IoTeX confirmed it is investigating unusual activity concerning one of its token safes after onchain analysts flagged a potential security incident. The project stated its team is fully engaged to assess and contain the situation, assuring the community that early estimates suggest losses are lower than rumors suggested, and that they have coordinated with exchanges and security partners to trace and freeze funds. The investigation followed claims by onchain investigator Specter that a private key connected to the safe was compromised, leading to the draining of tokens like USDC, USDT, IOTX, and WBTC, with estimated losses totaling approximately $4.3 million. The stolen assets were reportedly swapped into Ether and bridged to Bitcoin, with the attacker attempting rapid movements across chains. IoTeX's native token (IOTX) saw a price drop following the news. The article also notes that most crypto projects struggle to recover from major hacks due to poor initial responses, which severely impacts user confidence and long-term credibility.
(Source：Cointelegraph)