The IoTeX Foundation has released its latest investigation update regarding the February 21 security incident involving the ioTube cross-chain bridge, alongside a comprehensive compensation plan for affected users.
According to the foundation, full lifecycle on-chain tracking of the stolen assets has been completed. A significant portion of the compromised CIOTX has been frozen on-chain, while the remaining assets were converted into approximately 2,183 ETH and bridged to the Bitcoin network. The associated BTC addresses are currently under continuous monitoring.
This incident underscores the systemic risks inherent in cross-chain infrastructure. Cross-chain bridges operate as high-liquidity asset corridors across multiple networks. Once exploited, attackers can rapidly move, fragment, and reallocate assets across chains, significantly complicating tracking and recovery efforts—especially when funds transition from EVM-compatible networks to Bitcoin.
In response, the IoTeX Foundation has announced a 100% compensation commitment for users who held USDC, USDT, ETH, or WBTC bridged from Ethereum to IoTeX at the time of the incident. Losses of $10,000 or below will be reimbursed immediately in full. For losses exceeding $10,000, the first $10,000 will be paid immediately, with the remaining amount distributed over four quarters. An additional 10% compensation will be provided in the form of 12-month staked IOTX tokens. The official recovery address and Claims Portal will open on February 27, requiring users to submit transaction records for verification.
From a risk management perspective, compensation mechanisms alone are insufficient. The critical factor lies in proactive detection and real-time intervention. Cross-chain bridges require robust KYT (Know Your Transaction) monitoring systems capable of identifying abnormal fund flows, rapid multi-chain transfers, address clustering behavior, and suspicious transaction patterns.
Professional solutions such as Trustformer KYT provide real-time multi-chain transaction monitoring, risk labeling, fund flow visualization, and automated risk scoring. In complex scenarios where stolen funds migrate from Ethereum to Bitcoin, integrated cross-chain analytics becomes essential for effective surveillance and compliance readiness.
As regulatory scrutiny intensifies and institutional capital enters the market, cross-chain transparency and transaction traceability are becoming foundational requirements. Deploying advanced KYT infrastructure like Trustformer KYT enables protocols, exchanges, and stablecoin issuers to strengthen preventive security measures and respond swiftly to emerging threats.
The ioTube incident serves as a reminder that in the evolving Web3 ecosystem, real-time monitoring, blockchain intelligence, and cross-chain risk analytics are no longer optional—they are mission-critical.