IoTeX Hit by Private Key Exploit, Attacker Drains Over $2 Million
- Layer-1 blockchain IoTeX suffered a security breach after attackers compromised a private key, allowing them to move crypto from its token safe and bridge infrastructure.
- Early reports claimed over $8 million was stolen, but IoTeX said confirmed losses are about $2 million, and the core blockchain itself was not compromised.
- The attacker moved funds across blockchains to make recovery harder, while IoTeX works with exchanges and law enforcement to trace and freeze assets.
IoTeX, a Layer-1 blockchain that connects real-world devices to crypto applications, suffered a security breach after attackers compromised a private key linked to its token safe and bridge infrastructure.Â
Early reports from blockchain security researchers estimated losses of more than $8 million. However, IoTeX later said confirmed losses are around $2 million, much lower than initial estimates.Â
Hack Allowed Attacker to Move Funds Across Blockchains
The team said it has contained the incident and is working with exchanges and law enforcement to trace and freeze stolen funds. The attack happened after a private key was compromised.
In this case, the attacker used the key to move funds from IoTeX’s token safe. Security researchers said the attacker quickly swapped stolen tokens into ETH and then moved them toward BTC using cross-chain services.
This method helps attackers hide their tracks. Once funds move across multiple blockchains, recovery becomes harder.
We are aware of recent reports regarding suspicious activity involving an IoTeX token safe. Our team is fully engaged, working around the clock to assess and contain the situation.
Initial estimates indicate the potential loss is significantly lower than circulating rumors…
— IoTeX (@iotex_io) February 21, 2026
However, investigators have not yet confirmed how the private key was stolen. It remains unclear whether the key was exposed through human error, software vulnerability, or another method.
Meanwhile, the market reacted quickly. The IOTX token fell about 9%. The chart shows a sharp drop after news of the hack spread, followed by unstable trading.
IoTeX Says Chain Is Secure and Losses Are Limited
IoTeX said it has secured the chain and contained the threat. The team confirmed that stolen assets include USDC, USDT, IOTX, and WBTC.
Importantly, IoTeX said the core blockchain itself was not hacked. Instead, the attacker targeted a token safe or bridge component connected to the network.
🚨 Update on the recent security incident:
Our team has contained the situation and the IoTeX chain is being secured. Current data confirms the exploit impact is around $2M USD (including USDC, USDT, IOTX, and WBTC).
Investigations show this was a sophisticated, long-planned…
— IoTeX (@iotex_io) February 21, 2026
IoTeX is a blockchain network launched in 2019. It allows devices such as sensors, trackers, and machines to connect directly to blockchain applications.
The network uses its native token, IOTX, to pay fees and run applications. It also supports bridges that allow users to move crypto between IoTeX and other blockchains like Ethereum.
These bridge systems often hold large amounts of funds, making them a common target for hackers.
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