IoTeX is currently addressing a security incident involving one of its token safes, which has reportedly led to a loss of approximately $4.3 million. Following alerts from onchain analysts, the team has been working continuously to investigate the unusual activity. Estimates suggest that the actual financial impact may be less severe than initial rumors indicated.
The breach is linked to a compromised private key, as identified by the onchain investigator Specter. The wallet in question was drained of various tokens, including USDC, USDT, and IOTX, with the stolen assets swiftly converted into Ethereum and moved across different blockchain networks, complicating recovery efforts.
In reaction to the breach, the price of IoTeX's native token fell over 8% within 24 hours, settling around $0.0049. The project has coordinated with major exchanges and security partners to trace and freeze the funds associated with the attacker, assuring the community that the situation is being closely monitored.