AFX Trade Loses Over $24 Million in Bridge Security Breach
AFX Trade, a decentralized finance (DeFi) protocol built on the Arbitrum network, has fallen victim to a major security exploit. According to blockchain security firm Blockaid, attackers drained approximately $24.15 million worth of USDC through a vulnerability linked to the protocol’s bridge infrastructure.
The incident has raised fresh concerns about the security of cross chain bridges, which remain one of the most targeted areas in the DeFi ecosystem.
Blockaid Identifies Bridge as the Attack Vector
Blockaid reported that the exploit was limited to a bridge operated by AFX Trade. The firm clarified that the issue did not affect the broader Arbitrum network. Security researchers are now working closely with the Arbitrum team and the AFX Trade developers to investigate the attack and coordinate a response.
The blockchain security company continues to monitor the movement of the stolen assets while assisting with the ongoing investigation.
Stolen Funds Moved to Ethereum
Blockchain security platform PeckShield revealed that the attacker transferred the stolen USDC from Arbitrum to Ethereum shortly after the exploit. The funds were then exchanged for approximately 12,467 ETH, with a market value of around $24 million.
The rapid transfer and conversion of assets are common tactics used by attackers to complicate recovery efforts and reduce the chances of fund tracing.
Arbitrum Confirms Native Bridge Was Not Compromised
Steven Goldfeder, Chief Executive Officer of Offchain Labs, the company behind Arbitrum, confirmed that the exploit did not involve the network’s native bridge.
He explained that the suspicious transaction originated from a third party protocol rather than Arbitrum’s core infrastructure. Goldfeder also stated that the Arbitrum team is actively investigating the incident and will continue working with the affected project to provide additional updates.
Investigation Continues
The investigation into the AFX Trade bridge exploit is still underway. Security teams are analyzing the attack to determine how the vulnerability was exploited and whether any recovery options are available.
The incident highlights the ongoing security risks facing DeFi protocols and reinforces the importance of thorough smart contract audits and secure bridge infrastructure to protect user funds.
