The WEMIX blockchain network has confirmed a security incident after an attacker gained control of a smart contract connected to the WEMIX stablecoin system. The hacker created new tokens without permission and stole more than $724,000 worth of USDC.e.
According to WEMIX, the suspicious activity started on Sunday at 9:17 UTC. During the attack, the hacker created around 5.23 million WEMIX tokens without authorization.
The attacker then exchanged those tokens for about 30,736 WEMIX and 724,198.27 USDC.e. After that, the stolen USDC.e was transferred to the Ethereum and BNB Smart Chain networks, where it was swapped for other cryptocurrencies, including Ether (ETH) and Tether (USDT). The funds were later spread across several different wallet addresses.
WEMIX said it has identified the wallets used by the attacker and immediately contacted cryptocurrency exchanges and stablecoin providers to help freeze the stolen assets. The company added that some exchanges have already blocked wallets connected to the hack.
To reduce further risks, WEMIX has temporarily suspended all blockchain bridges connected to its WEMIX3.0 network. This includes Chainlink CCIP and the PLAY Bridge. The company has also paused trading in affected liquidity pools, removed liquidity provided by the WEMIX Foundation, and temporarily stopped services such as the WEMIX Module and the PNIX decentralized exchange (DEX).
The investigation is still ongoing, and WEMIX said the exact cause of the attack and the total financial impact have not yet been confirmed. The company warned that the reported figures could change as more information becomes available.