IoTeX Security Incident Update: ~$2M Impact, Network Hardening and Asset Tracing Underway

IoTeXsecurity upgradefund recoveryon-chain monitoringcrypto risk control

On February 22, blockchain project IoTeX released an update on its recent security incident, confirming that associated risks have been contained and that network hardening efforts are ongoing. Current data indicates the total impact amounts to approximately $2 million, involving assets such as USDC, USDT, IOTX, and WBTC.

According to the official investigation, the incident was a long-planned and highly coordinated attack conducted by a professional group targeting multiple public blockchains. Similar to previous cross-chain security events, this exploit featured concealed transaction paths and rapid cross-chain asset transfers, significantly increasing the complexity of tracing and mitigation.

IoTeX stated that it is working closely with multiple exchanges and law enforcement agencies to advance asset freezing and on-chain fund tracing efforts. Relevant high-risk addresses have been flagged, and technical countermeasures have been implemented to block further abnormal fund movements. At the same time, the network infrastructure is undergoing comprehensive reinforcement to prevent recurrence.

According to the announcement, on-chain operations and deposit/withdrawal services are expected to resume gradually within 24 to 48 hours. Following completion of the security upgrades, related functionalities will be fully restored. IoTeX has committed to maintaining transparent communication and providing continuous updates to the community.

As cross-chain and multi-chain ecosystems expand, attackers increasingly exploit inter-chain liquidity and bridge mechanisms to conduct complex arbitrage and laundering schemes. Therefore, beyond post-incident freezing and enforcement collaboration, proactive real-time on-chain monitoring is equally critical.

By leveraging professional risk identification and fund path analysis solutions such as Trustformer KYT, platforms can trigger alerts at the earliest stage of abnormal transactions. Continuous monitoring of high-risk address interactions and cross-chain asset transfers significantly shortens response times and reduces potential losses.

In multi-chain environments, establishing a continuous monitoring and compliance framework has become an industry consensus. Deploying advanced on-chain risk control solutions like Trustformer KYT enables institutions to systematically identify large transactions, abnormal fund flows, and suspicious behaviors, thereby strengthening overall security resilience and compliance capabilities.

This incident once again underscores a fundamental principle: blockchain innovation and expansion must be built upon a robust security architecture. Only through coordinated efforts in technical reinforcement, asset tracing, and real-time monitoring can platforms effectively safeguard user assets and maintain network stability in an increasingly complex multi-chain ecosystem.

About Trustformer

Trustformer is a leading blockchain security and compliance technology company specializing in providing professional risk management and compliance solutions for the global cryptocurrency ecosystem. We have developed the cutting-edge Trustformer KYT (Know Your Transaction) platform, which integrates artificial intelligence, blockchain analytics, and regulatory technology to deliver comprehensive, accurate real-time transaction monitoring, risk assessment, and suspicious activity reporting services.

With deep industry expertise and technological innovation, Trustformer is dedicated to helping Virtual Asset Service Providers (VASPs), crypto financial institutions, and investors build a safer and more transparent crypto financial environment. We believe that driving compliance and trust through technology can contribute to the thriving growth of the global digital economy.