IoTeX Hit by Private Key Exploit Resulting in Over $2 Million Loss

IoTeX, a Layer-1 blockchain network that enables real-world devices to connect directly to crypto applications, has been hit by a security breach. The attackers exploited a private key linked to the token safe and bridge infrastructure, allowing them to move over $2 million in cryptocurrency.

The attack happened after a private key was compromised, and the attacker used it to move funds from IoTeX's token safe. Security researchers have noted that the attacker quickly swapped stolen tokens into Ethereum (ETH) and then moved them toward Bitcoin (BTC) using cross-chain services.

While the exact method of how the private key was stolen remains unclear, investigators are working with exchanges and law enforcement to trace and freeze the stolen funds. IoTeX has assured users that the core blockchain itself was not compromised and that the incident is contained.