Alephium Token Bridge Exploited for $815,000

Alephium's Token Bridge has been exploited, resulting in the loss of approximately $815,000. The attackers minted 13.76 million wrapped ALPH tokens from forged transactions.

The attack on Alephium's bridge adds to a growing trend of bridge attacks in May, with several high-profile incidents occurring in recent weeks. On May 18, the Verus-Ethereum bridge lost around $11.5 million in an attack, and on May 30, Gravity Bridge was hacked for $5.4 million.

According to blockchain security firm Blockaid, the attacker compromised three of four guardian keys protecting the bridge, allowing them to forge Verified Action Approvals (VAAs) and mint wrapped ALPH tokens. The entire operation took roughly seven minutes.

Alephium has disputed Blockaid's claim that the exploit was caused by a guardian key compromise, stating that it was instead due to an offchain vulnerability in the bridge backend. The protocol has warned liquidity providers to withdraw their funds immediately and has asked users not to provide liquidity to ALPH pools on Uniswap or PancakeSwap.