- IoTeX reported suspicious activity in a token safe, with assets like USDC, USDT, IOTX, PAYG, WBTC, and BUSD drained and partly moved as ETH
- On-chain monitor Specter estimated losses around $8.8M, while IOTX fell nearly 10% and IoTeX contacted major exchanges and security partners
The price of IoTeX’s native token, IOTX, dropped sharply after suspicious activity was uncovered in one of the project’s token safes. Data from CoinGecko indicated an almost 10% decline, coinciding with reports of a potential security compromise involving the blockchain platform built for Internet of Things (IoT) applications. As details emerged, the IoTeX team moved to address concerns, stating that an investigation is underway and pushing back against speculation about the scale of the incident.
Suspicious token safe activity triggers IOTX sell-off
The market reaction followed the detection of irregular behavior in a token safe linked to IoTeX. The project, which focuses on infrastructure for IoT-related blockchain use cases, saw its IOTX coin fall by nearly 10%, according to CoinGecko. Traders responded quickly to the first alerts, which pointed to unauthorized movements of assets from the secure storage.
IoTeX acknowledged the issue and confirmed that it is actively examining what happened. In its communication, the team emphasized that the actual damage appears significantly lower than what circulating rumors have suggested. This effort to clarify the situation aimed to stabilize sentiment as the token’s price adjusted to the initial reports.
Despite the drop, IoTeX presented the event as contained compared with some of the more extreme claims circulating online. However, the combination of a token safe incident and a notable price slide highlighted how sensitive the market is to any indication of weakness in project infrastructure or key management.
On-chain investigator details IoTeX private key compromise
The first public warning about the incident came from Specter, an on-chain monitoring account that specializes in real-time detection of blockchain anomalies. Specter reported that suspicious movements from the IoTeX token safe suggested a possible private key compromise, enabling an attacker to gain control of the assets stored there.
According to the investigator’s description, a range of tokens was drained from the safe. The assets taken included USDC, USDT, IOTX, PAYG, WBTC, and BUSD. After being removed, these holdings were consolidated and converted into ETH. Part of that ETH was then moved to another network, with 45 ETH reportedly bridged to Bitcoin.
Specter’s early assessment estimated that the total losses had reached approximately $8.8 million at the time of reporting.
This provisional figure underscored the seriousness of the breach, even as IoTeX attempted to temper speculation about the overall impact. The attack flow, involving multiple assets, conversion to ETH, and cross-chain transfers, followed a pattern often seen in major on-chain thefts, where funds are rapidly moved to complicate tracking and recovery.
IoTeX response and efforts to contain hacker funds
In the wake of the reported compromise, IoTeX stated that it has brought in external support to manage the situation. The team said it has contacted major exchanges and security partners to help identify, trace, and potentially freeze the attacker’s holdings. By engaging trading platforms, IoTeX aims to limit the hacker’s ability to cash out or further move the stolen funds.
The project also reiterated that the scope of the damage, based on its internal review, is “far less severe” than many online discussions have suggested. This message appeared targeted at calming the IOTX market and reassuring users concerned about the safety of their assets. At the same time, the ongoing investigation means that the full picture of how the private key was allegedly compromised, and whether other systems might be affected, has not yet been fully disclosed.
For holders of IOTX and other tokens connected to IoTeX, the incident serves as a reminder of the central role that private key security plays in blockchain ecosystems. While the team has moved to coordinate with exchanges and security specialists, the initial impact on market confidence was visible in the nearly double-digit percentage drop in the token’s price.
Conclusion
IoTeX is confronting the fallout from a security incident involving one of its token safes, following reports from on-chain monitor Specter of a suspected private key breach. Assets including USDC, USDT, IOTX, PAYG, WBTC, and BUSD were taken, converted into ETH, and partially bridged to Bitcoin, with estimated losses of about $8.8 million. The IOTX coin fell almost 10% on CoinGecko as the news spread. IoTeX has said it is working with major exchanges and security partners to track and immobilize the attacker’s funds and maintains that the real impact is smaller than many rumors suggest.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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