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Market News

IoTeX Provides Latest Update on $4.3M Bridge Hack, Recovery in Progress

IoTeX confirmed the bridge is in final testing, most stolen tokens are frozen, recovery of other assets is underway, and a full report will be released.

Written By:
Dishita Malvania

Reviewed By:
Divya Mistry

Last updated: February 23, 2026 3:32 PM
Published February 23, 2026 3:16 PM
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Last updated: February 23, 2026 3:32 PM
Published February 23, 2026 3:16 PM
IoTeX Updates on ioTube Bridge Hack: Most Stolen Tokens Frozen

Key Highlights

  • Between 80-90% of IOTX tokens are frozen, reducing market impact.
  • Non-IOTX assets are being traced with blockchain security firms and law enforcement.
  • Ethereum-side bridge in final testing, full incident report and recovery plan coming soon.

IoTeX has given an update on the ioTube Bridge hack, which happened on February 21, 2026, when the Ethereum-side bridge was compromised. Co-Founder Raullen shared details on X about the stolen assets, recovery efforts, and when the bridge is expected to restart.

February 21: The hack

The breach involved a validator owner key on the Ethereum-side bridge. The attacker moved approximately $4.3 million in assets, including IOTX tokens minted via the bridge and other reserve assets.

Tokens were sent through THORChain into multiple Bitcoin wallets. Network validators paused the bridge quickly to prevent further losses.

IoTeX confirmed that its Layer 1 blockchain, consensus mechanism, and native smart contracts were not affected. Only the Ethereum-side bridge contracts were compromised. Bridges on Binance Smart Chain, Base, and other supported networks were unaffected.

“The IoTeX L1 chain, its consensus mechanism, and all native smart contracts were NOT compromised. The exploit was isolated to ioTube’s Ethereum-side bridge contracts.”

February 22: First update

Following the hack, IoTeX shared its first update on X. The co-founder explained that the stolen assets fall into two categories:

Non-IOTX Bridge Reserve Assets

These are being traced and recovered with the help of top blockchain security firms and law enforcement.

IOTX Tokens Minted via the Compromised Bridge

Around 80-90% of these tokens are frozen on chains with no liquidity. They cannot be sold, so they will not affect the market. The remaining tokens are being coordinated with exchanges and trading platforms to freeze them as well.

February 23: Latest update

In the latest update, the network said that the chain restart is in final testing.

The network confirmed:

  • Frozen IOTX tokens are secure and cannot be moved.
  • Non-IOTX assets are being traced and recovered.
  • A full incident report and recovery plan will be released once ready.

“We will continue to share transparent updates as the situation progresses.”

Recovery and next steps

IoTeX is taking several actions to address the incident:

  • Freezing remaining IOTX tokens with exchanges.
  • Working with blockchain security firms and law enforcement to recover other stolen assets.
  • Completing testing for a safe restart of the bridge.
  • Publishing a detailed incident report and recovery plan.

Background

The ioTube bridge lets users move tokens between IoTeX and other blockchains. Only the Ethereum-side bridge was affected. Other bridges, like Binance Smart Chain and Base, stayed secure.

The hack shows the risks bridges can face. Most of the stolen tokens are now frozen, so the market impact is limited.

Also Read: Armstrong Shares Optimistic Market Structure Update

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Dishita Malvania - Senior crypto journalist at The Crypto Times
By Dishita Malvania
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Dishita Malvania is a Crypto Journalist with 3 years of experience covering the evolving landscape of blockchain, Web3, AI, finance, and B2B tech. With a background in Computer Science and Digital Media, she blends technical knowledge with sharp editorial insight. Dishita reports on key developments in the crypto world—including Litecoin, WazirX, Solana, Cardano, and broader blockchain trends—alongside interviews with notable figures in the space. Her work has been referenced by top digital media outlets like Entrepreneur.com, The Independent, The Verge, and Metro.co, especially on trending topics like Elon Musk, memecoins, Trump, and notable rug pulls.
Divya Mistry - Content Editor at The Crypto Times
By Divya Mistry
Follow:
Divya Mistry is a Content Editor with over 9 years of experience in news, PR, marketing, and research. Armed with a Master’s Degree in English Literature from the University of Mumbai, she specializes in crafting and refining long-form content across digital and print platforms. Over the years, Divya has contributed to and shaped content for leading brands across a range of industries, including real estate, healthcare, vertical transport, entertainment, lifestyle, education, EdTech, tech, and finance. Her research work has been featured on platforms like DNA India, Forbes, and Elevator World India. She now brings her editorial and research skills to explore the rapidly evolving world of cryptocurrency.

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