IoTeX Investigates $4.3M Loss After Private Key Compromise and Cross-Chain Bridge

IoTeX disclosed on Saturday it is investigating unusual activity in one of its token safes after on-chain data showed a potential private key compromise, with estimated losses of about $4.3 million, analyst Specter said. The affected wallet lost multiple assets including USDC, USDT, IOTX, and wrapped Bitcoin (WBTC), with stolen funds converted into Ether and roughly 45 ETH subsequently bridged to Bitcoin. IoTeX stated it is coordinating with major exchanges and security partners to trace and freeze addresses linked to the suspected attacker. Following the incident, IoTeX's native token IOTX fell over 8% in 24 hours to around $0.0049, CoinMarketCap data show, while security experts warned such breaches can trigger user withdrawals and lasting reputational damage.