IoTeX Investigates Token Safe Incident as Analysts Estimate $4.3M Loss

Decentralized identity protocol IoTeX said it is investigating unusual activity tied to one of its token safes. In a Saturday post on X, the team said it was 'fully engaged, working around the clock to assess and contain the situation,' adding that early estimates put potential losses below circulating rumors.

The project said it had coordinated with major exchanges and security partners to trace and freeze funds and that the situation was under control. IoTeX's native token, IOTX, slid more than 8% over 24 hours to about $0.0049, per CoinMarketCap. Onchain investigator Specter flagged that a private key connected to the safe may have been compromised and said the wallet was drained of several tokens, including USDC, USDT, IOTX and WBTC, with losses estimated at roughly $4.3 million.

The stolen funds were reportedly swapped into Ether, and about 45 ETH was bridged to Bitcoin.

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