IoTeX Bridge Breach Triggers Multi-Chain Fund Movement

[etfs]

Layer-1 blockchain IoTeX confirmed a security breach after attackers compromised a private key connected to its token safe and bridge infrastructure.

Initial alerts from blockchain security firm PeckShield estimated losses exceeding $8 million. However, IoTeX later clarified that confirmed losses are closer to $2 million — significantly lower than early reports.

According to investigators, the attacker used the compromised key to move assets out of the token safe, quickly swapping them into Ethereum before bridging the funds toward Bitcoin using cross-chain infrastructure such as THORChain.

This cross-chain movement makes recovery more difficult, as funds become harder to trace once routed across multiple networks. Authorities and exchanges are now working with IoTeX to track and potentially freeze stolen assets.

Despite the breach, the team stated that the incident has been contained and investigations are ongoing to determine how the private key was exposed.

[cryptohog]

every hack is a case study and somehow we never graduate