Qubic Network Halts Trading After $1.3M Wallet Exploit

Qubic Network Suspends Activity Following $1.3 Million Theft

The Qubic network halted operations overnight after a security breach resulted in the theft of roughly $1.3 million worth of QU tokens. Approximately 1,404 wallets were drained of 2.94 trillion QU, according to reports.

Initial investigations indicate the incident wasn’t caused by a vulnerability within the Qubic blockchain. Instead, the theft appears to be linked to predictable wallet seeds generated by older Apple devices and web browsers. This suggests a weakness in how users generated and secured their private keys.

Validators moved to pause the network to contain the damage. A significant portion of the stolen QU tokens remain trapped on the paused network. Cryptocurrency exchange MEXC has also frozen a portion of the compromised funds, limiting the attacker’s ability to liquidate the stolen assets.

The incident highlights the importance of robust key management practices and the risks associated with using potentially insecure seed generation methods. Qubic developers are expected to provide further details on recovery efforts and preventative measures in the coming days.

Source: Bitcoin.com News