Alephium Suffers $815K Loss Due to Bridge Hack

A recent hack on Alephium's Token Bridge on Ethereum has led to significant losses for the project and its users. The attackers exploited an off-chain vulnerability, which allowed them to mint forged tokens worth approximately $815,000.

The attack was carried out quickly, with the entire operation taking roughly seven minutes according to blockchain security firm Blockaid. The attackers used forged Verified Action Approvals (VAAs) to authorize cross-chain transfers and unlock additional assets from the bridge's custody contract.

Alephium has denied reports that the guardian keys were compromised, instead attributing the exploit to an off-chain vulnerability in the bridge backend. The project has warned liquidity providers to withdraw their funds immediately, as the attacker cannot redeem or bridge the forged tokens back through the Alephium bridge.