Decentralized identity protocol IoTeX is investigating unusual activity tied to one of its token safes, a situation flagged by onchain analysts as a potential security incident.
The project confirmed its team is "fully engaged, working around the clock to assess and contain the situation." IoTeX stated that early estimates indicate potential losses are lower than circulating rumors. The protocol has coordinated with major exchanges and security partners to trace and freeze funds linked to the attacker.
"The situation is under control. We will continue to monitor closely and provide timely updates to the community," the project announced.
IoTeX’s native token, IOTX, saw a price drop of over 8% in the 24 hours following the incident.
Onchain investigator Specter claimed a private key connected to the safe may have been compromised, leading to the draining of several tokens including USDC, USDt, IOTX, and wrapped Bitcoin (WBTC). Losses are estimated at approximately $4.3 million. The stolen funds were reportedly swapped into Ether and bridged to Bitcoin.
Analysts published addresses associated with the suspected attacker, showing rapid movements through decentralized exchanges and token swaps, suggesting an attempt to quickly convert and move assets across chains.