IoTeX Blockchain Suffers Security Breach

IoTeX, a Layer-1 blockchain that connects real-world devices to crypto applications, has suffered a security breach after attackers compromised a private key linked to its token safe and bridge infrastructure.

The incident allowed the attacker to move funds from IoTeX's token safe, with the stolen assets including USDC, USDT, IOTX, and WBTC. The attacker quickly swapped the stolen tokens into ETH and then moved them toward BTC using cross-chain services, making it harder for investigators to track the stolen funds.

The market reacted quickly to the news, with the IOTX token falling about 9%. IoTeX said that the core blockchain itself was not hacked, but rather a token safe or bridge component connected to the network was targeted.