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>>IoTeX breach: Immediate $440,000 bounty uncovers a major cross‑chain bridge flaw

IoTeX breach: Immediate $440,000 bounty uncovers a major cross‑chain bridge flaw

crypthub

about 6 hours ago

Exploit Overview

A hacker exploited a flaw in IoTeX’s ioTube cross‑chain bridge, minting 410 million CIOTX tokens without collateral. The illicit tokens were rapidly swapped for Bitcoin and Ethereum, draining about $4.4 million. Once detected, the bridge was paused to stop further loss.

IoTeX Bounty Strategy

IoTeX posted a 10 % bounty of $440 k, demanding the return of the stolen assets within 48 hours. The offer aims to recover most funds while signaling proactive governance to the community. Critics warn such rewards may encourage future attackers seeking a “pay‑off” option.

Bridge Security Landscape

Cross‑chain bridges are a major attack surface, accounting for roughly 70 % of major crypto thefts in 2024. Their complexity and need to validate state across disparate blockchains create many logical vulnerabilities. Ongoing industry work focuses on standardizing security frameworks and adding time‑locked upgrades.

Impact and Industry Response

The hack caused temporary volatility in the IOTX token but did not collapse its price. Regulators are scrutinizing bridges for AML and capital‑control challenges, especially when funds are moved to BTC and ETH. The outcome of IoTeX’s bounty may set a precedent for handling future DeFi breaches.