A major security incident has just been revealed in IoTeX. The team confirmed on X that unusual activity was observed in their token safe, and on-chain analysts traced approximately $4.3 million in losses. It appears that the private keys have been leaked somewhere, allowing attackers to withdraw USDC, USDT, IOTX, and wrapped Bitcoin. Following this, the funds were rapidly swapped — some into ETH, then bridged into BTC. Classic money tracing move.

The IoTeX team is working around the clock and coordinating with major exchanges and security partners to trace and freeze the stolen funds. They have stated that the initial loss estimate may be lower than rumors suggest, but it remains a significant loss. The market responded immediately — the price of IOTX dropped within 24 hours, demonstrating how quickly security incidents can shake investor confidence.

This incident once again highlights the vulnerabilities of hot wallets and also shows how quickly attackers want to access cross-chain liquidity. For IoTeX, the real challenge now is not just recovering the funds — it’s rebuilding user trust, especially for a privacy-focused project where trust is paramount.