WEMIX Reports $724K Theft Following Smart Contract Compromise
Following a security breach that compromised a contract associated with WEMIX$, the platform halted bridge operations, liquidity pool transactions, and multiple services as hackers transferred 724,198 USDC.e tokens.
The layer-1 blockchain platform WEMIX reported that a malicious actor successfully transferred approximately 724,000 in USDC.e tokens following a security breach that compromised control of a smart contract associated with its WEMIX$ stablecoin, allowing unauthorized token minting.
According to WEMIX's preliminary incident report, the suspicious transactions took place on Sunday at exactly 9:17 UTC. The malicious actor minted approximately 5.23 million WEMIX$ tokens, subsequently converting them into 30,736 WEMIX tokens and 724,198.27 USDC.e. Following the conversion, the USDC.e tokens were transferred via bridges to both Ethereum and BNB Smart Chain networks, where they were swapped for various cryptocurrencies including Ether and Tether's USDT before being dispersed among numerous wallet addresses.
According to WEMIX, a portion of the stolen assets were transferred to centralized cryptocurrency exchanges. The platform has successfully identified the wallet addresses controlled by the attacker and has submitted formal requests to exchanges and stablecoin issuers for asset freezing and investigative support, noting that certain exchanges have already taken action to freeze addresses connected to the security incident.
In response to the breach, the company implemented an immediate temporary suspension of all blockchain bridges linking to its WEMIX3.0 layer-1 network, which includes both the Chainlink CCIP and PLAY Bridge. Additional emergency measures included halting all trading activity in the compromised liquidity pools, removing foundation-supplied liquidity from circulation, and suspending multiple platform services such as the WEMIX$ Module and the PNIX decentralized exchange.
WEMIX noted that investigations into the root cause and complete scope of the incident are ongoing and cautioned that the preliminary damage assessment figures provided may be subject to revision as more information becomes available.