TL;DR:
-
- The IoTeX network was paused for 24–48 hours following the theft of a validator’s private key.
- Estimated losses range between $2 million and $4.3 million, according to on-chain analysts.
- The team will implement security upgrades and a compensation plan for affected users.
The IoTeX network development team halted all blockchain operations following a recent security breach on the IoTeX network. This drastic decision was made after detecting a critical vulnerability that allowed unauthorized access via a compromised private key.
Preliminary reports indicate the incident occurred after a validator’s key was stolen, triggering illicit activities across the bridge infrastructure. This event highlights, once again, the vulnerability of key custody within current governance models.
Due to this intrusion, it is estimated that the hacker drained multiple assets, directly impacting trust in the network’s interoperability. Security analyst PeckShield has already identified and mapped the addresses linked to the attacker to coordinate their freezing.
Containment Measures and User Compensation Plan
Raullen Chai, co-founder of IoTeX, confirmed that initial losses are close to $2 million, although the final figure remains under deep investigation. However, external sources and on-chain analysts suggest the real impact could rise to $4.3 million.
Consequently, the team has initiated a massive security update that will keep the network inactive for a period of up to 48 hours. Furthermore, they are working closely with exchanges and international authorities to restrict any further movement of the stolen funds.
Regarding users affected by the security breach on the IoTeX network, a loss reconciliation plan has been announced. Those who interacted with platforms such as TokenSafe must verify their exposure once operations are officially restored.
Finally, the price of the IOTX token has shown stability, trading at $0.0045 while the market awaits the restart of network activity. The success of this recovery phase will be essential to restoring the integrity of the ecosystem and investor confidence.
