Layer-1 blockchain network WEMIX reported that an attacker compromised a contract linked to its WEMIX$ stablecoin, issuing unauthorized tokens and moving approximately $724,000 in USDC.e. The company has suspended bridges, liquidity-pool trading, and other services as it investigates the incident.
This incident highlights ongoing security vulnerabilities within the DeFi space, potentially eroding user confidence and impacting the stability of stablecoin-linked protocols. The suspension of services and asset freezes demonstrate the immediate operational and financial consequences of such breaches.
The Layer-1 blockchain network WEMIX announced that an attacker gained control of a contract linked to its WEMIX$ stablecoin, leading to the unauthorized issuance of tokens and the movement of approximately $724,000 in USDC.e. The incident occurred on Sunday at 9:17 UTC, according to WEMIX. The attacker reportedly issued about 5.23 million WEMIX$, which was then converted into 30,736 WEMIX and 724,198.27 USDC.e. The USDC.e was subsequently bridged to the Ethereum and BNB Smart Chain networks, exchanged for assets like Ether and Tether’s USDT, and distributed across multiple addresses. Some of these funds were deposited into centralized exchanges. WEMIX stated it has identified the attacker's wallets and has requested asset freezes and cooperation from exchanges and stablecoin issuers, noting that some exchanges have already complied by freezing relevant addresses. In response to the breach, WEMIX has temporarily suspended all bridges connected to its WEMIX3.0 network, including Chainlink CCIP and the PLAY Bridge. Trading in affected liquidity pools has also been halted, foundation-provided liquidity has been withdrawn, and services such as the WEMIX$ Module and the PNIX decentralized exchange have been paused. The company is continuing to investigate the cause and the full extent of the impact, cautioning that preliminary figures may change.
Pick the topics you care about. Get only what matters, on your cadence.