Hyperbridge: Bug Loss Adjusted to Around $2.5 Million

BlockBeats News, April 16th, Hyperbridge announced that the estimated losses from the Token Gateway exploit on April 13th have been increased from the initial approximately $237,000 to around $2.5 million. The additional losses mainly come from the liquidity pools on Ethereum, Avalanche, BNB Chain, and Arbitrum.

The attacker bypassed MMR proof verification by forging cross-chain messages, withdrew about 245 ETH from the TokenGateway contract, and minted 1 billion bridged DOT tokens to sell to the liquidity pool. Currently, most of the stolen funds have been traced on-chain to Binance, and the project team is in communication with Binance's compliance team and law enforcement. The project team stated that if the funds cannot be fully recovered, they will distribute BRIDGE tokens in a structured manner to compensate for the remaining losses one year after the incident in a cross-chain fashion. The cross-chain functionality will only be restored after the patch completes an independent audit.