WEMIX says attacker moved about $724,000 after contract breach WEMIX suspended bridges, liquidity-pool trading and several services after an attacker compromised a WEMIX$-linked contract and moved 724,198 USDC.e.

The Layer-1 blockchain network WEMIX reported that an attacker compromised ownership of a contract linked to its WEMIX$ stablecoin and issued tokens without authorization. This breach led to the attacker moving approximately $724,198 in USDC.e tokens. The unauthorized transactions took place on Sunday at 9:17 UTC, when the attacker issued about 5.23 million WEMIX$, which was then converted into 30,736 WEMIX tokens and 724,198.27 USDC.e.

Following the breach, the attacker bridged the USDC.e tokens to Ethereum and BNB Smart Chain, exchanging them for other assets including Ether and Tether’s USDT. These assets were subsequently distributed across multiple addresses. WEMIX identified some of the funds had been deposited into centralized exchanges and has requested these exchanges and stablecoin issuers to freeze the attacker’s wallets to mitigate further misuse. Some exchanges have already acted by freezing addresses linked to the incident.

In response to the security incident, WEMIX temporarily suspended all bridges connected to its WEMIX3.0 network, including the Chainlink CCIP and the PLAY Bridge. Other precautionary measures included halting trading in affected liquidity pools, withdrawing foundation-provided liquidity, and pausing services like the WEMIX$ Module and the PNIX decentralized exchange. The company emphasized that the cause and full impact of the breach are still under investigation and that the preliminary numbers could be subject to change. This update underscores ongoing security challenges in the DeFi space.