IoTeX Hit by $8-9M Hack: Private Key Compromise Triggers Token Price Drop

IoTeX, a blockchain platform focused on AI, suffered a significant security breach resulting in losses estimated between $8 million and $9 million. The attack stemmed from a compromised private key, granting the attacker access to token safes and minting capabilities. Stolen assets, including USDC, USDT, and IOTX, were swiftly converted to Ethereum and bridged to Bitcoin, complicating tracing efforts. Approximately 111 million CIOTEX tokens were also minted. While initial reports suggested losses as high as $9 million, IoTeX maintains the actual figure may be lower, with some estimates around $4.3 - $8 million, and is actively working with exchanges and law enforcement to freeze funds. The IOTX token price experienced a substantial decline, dropping between 7% and 15% across the week, with a surge in trading volume. IoTeX anticipates restoring normal chain operations within 24-48 hours and assures users that funds on the chain remain safe. This incident underscores the ongoing vulnerabilities within the blockchain space, particularly concerning private key management and cross-chain bridge security.