Security firms said the attacker used enough hot-validator signatures to approve a 24.15 million USDC withdrawal, while Arbitrum said its native bridge was not affected.
- AFX Trade, a decentralized perpetuals exchange on Arbitrum that settles in USDC, was drained of about $24.15 million after an attacker compromised validator signing keys for a bridge the protocol operates.
- Arbitrum’s native bridge was not breached, and security firm Blockaid said the on-chain logic functioned as designed, with five hot-validator signatures meeting the quorum needed to authorize the withdrawal.
- The attacker moved the stolen USDC to Ethereum and swapped it for roughly 12,467 ETH, nearly emptying AFX’s total value locked amid a broader wave of high-profile crypto hacks on Arbitrum-based protocols.
The contract treated the withdrawal as valid and released the funds after a 200-second dispute period. The bridge did exactly what it was designed to do, but the keys authorizing the withdrawal were apparently in the wrong hands.
The attacker then bridged the stolen USDC to Ethereum and swapped it for about 12,467 ETH, worth roughly $24 million, which on-chain trackers say now sits in a single wallet.
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Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters :
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
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