IoTeX Proposes 10% Reward for Immediate Return of $4.4 Million from Cross-Bridge Hackers
IoTeX Proposes a 10% Reward for the Return of Stolen Funds
In a recent cybersecurity incident,IoTeX,a prominent blockchain platform,has been hit by hackers who exploited vulnerabilities in its cross-chain bridge,ioTube. The attackers managed to divert approximately $4.4 million. in response,IoTeX has announced an offer of a 10% reward—totaling $440,000—to the perpetrators should they return the stolen assets within two days.
Details of the Security Breach and IoTeX’s Response
The breach occurred due to compromised private keys that allowed unauthorized access to bridge contracts on February 21, 2026. Following this event, Raullen Chai, co-founder and CEO of IoTeX, emphasized that all transactions involving Ethereum, Bitcoin through their network had been meticulously tracked and monitored.
Chai communicated via an onchain message that legal actions woudl be waived and no personal details would be disclosed to authorities if the funds were returned promptly. He also highlighted ongoing security measures including flagging suspicious exchange deposits which have been temporarily frozen.
Further enhancing security protocols post-incident, Chai announced the rollout of Mainnet v2.3.4 which mandates node operators to update their systems with new security features including a blacklist for known malicious addresses involved in this incident or similar breaches.
Market Impact and Broader Implications
Following news of the hack on February 21st , there was an immediate impact on IOTX token prices which plummeted by about 22%, although there was some recovery thereafter. This incident underscores persistent vulnerabilities in cross-chain bridges—a critical component facilitating asset transfers across different blockchains—which have seen over $3 billion lost due to hacks as per recent industry analyses.
Experts like Nick Motz from ORQO Group pointed out that such breaches often stem from operational lapses rather than flaws in blockchain technology itself; emphasizing how crucial robust key management is within crypto infrastructure operations.
Analysis by Industry Experts
Security firms engaged in blockchain analysis like PeckShield estimated losses could exceed $8 million as attackers converted stolen assets into Ethereum (ETH) before moving them into Bitcoin (BTC) using platforms like THORChain for laundering purposes.
On another front Specter’s investigation suggested potential losses around $4.3 million based solely on direct asset drainage excluding any secondary effects such as minted tokens or other derivatives impacted by these movements.
Despite efforts at containment and tracking down involved cryptocurrency wallets—holding up to approximately 66 BTC valued near current market rates—the actual recovery prospects remain uncertain with experts cautioning against overly optimistic expectations regarding fund retrieval.
IoTeX has committed to devising compensation strategies within two days following their initial announcement aiming at mitigating financial impacts on affected parties while reinforcing system integrity against future threats.
This episode serves as yet another stark reminder about inherent risks associated with digital asset management highlighting ongoing challenges faced by crypto enterprises striving towards enhanced user protection amidst evolving cyber threat landscapes.
