WEMIX has suspended multiple network functions after an attacker compromised ownership of a contract tied to its WEMIX$ stablecoin and moved 724,198.27 USDC.e. The company said the abnormal transactions took place on Sunday at 9:17 UTC and triggered emergency measures across parts of the WEMIX3.0 ecosystem.

According to WEMIX, the attacker minted about 5.23 million WEMIX$, converted those tokens into 30,736 WEMIX and 724,198.27 USDC.e, and then moved the USDC.e across other blockchains. The project said the incident is still under investigation and that the figures disclosed so far are preliminary and may change.

How the funds were moved

WEMIX said the compromised contract enabled the attacker to issue roughly 5.23 million WEMIX$. Those tokens were then swapped into two assets: 30,736 WEMIX and 724,198.27 USDC.e.

The company said the USDC.e was bridged out to Ethereum and BNB Smart Chain. After that, the assets were exchanged into other tokens, including Ether and Tether’s USDT, and then dispersed across multiple addresses.

Emergency suspensions across the network

In response, WEMIX temporarily halted all bridges connected to its layer-1 network, WEMIX3.0. The suspension covers bridges including Chainlink CCIP and the PLAY Bridge.

The project also stopped trading in the affected liquidity pools, removed liquidity supplied by the foundation, and paused several related services. Among the services named by WEMIX were the WEMIX$ Module and the PNIX decentralized exchange.

Exchange coordination and freeze requests

WEMIX said it identified wallets tied to the attacker and asked centralized exchanges and stablecoin issuers for assistance. The company also requested freezes on assets linked to the incident.

Some exchanges have already frozen addresses associated with the attack, according to WEMIX. The company said part of the funds had been deposited to centralized exchanges before those actions were taken.

Investigation remains ongoing

WEMIX said both the cause of the breach and the full extent of the impact are still being examined. It cautioned that the transaction amounts and other preliminary details released so far could be revised as the investigation continues.

For now, the confirmed next step is continued coordination with exchanges and issuers while the network restrictions remain in place. The company has not said in the source material when affected bridges, liquidity pools, or paused services will resume.

Source: cointelegraph.com