Image Credit: wemix.com
The WEMIX Foundation temporarily suspended all bridges connected to the WEMIX3.0 network after an attacker took control of a contract tied to the WEMIX$, the ecosystem’s USDC-backed stablecoin. WEMIX is the network’s native token, while WEMIX$ is its stablecoin. USDC.e is the bridged version of USDC used on WEMIX3.0.
The attacker minted about 5.23 million WEMIX$ without permission. Part of the tokens were converted into 30,736 WEMIX and 724,198.27 USDC.e before the USDC.e was moved to Ethereum and BNB Smart Chain.
Attacker Converts Minted WEMIX$ Into USDC.e
WEMIX detected the abnormal transactions at about 9:17 UTC on July 26. The attacker used stolen ownership permissions to mint approximately 5.23 million WEMIX$.
The USDC.e was transferred to Ethereum and BNB Smart Chain before being exchanged for assets including Ether and USDT. The funds were then divided among several addresses, while some were deposited into centralized exchanges. WEMIX said:
“The attacker’s wallets and fund movements have been identified and are being actively tracked.”
The Foundation contacted exchanges and stablecoin issuers to request that the funds be frozen. Some addresses linked to the incident had already been blocked when the update was published.
WEMIX Suspends Bridges and Liquidity Pool Trading
The Foundation halted every bridge connected to WEMIX3.0, including the PLAY Bridge and its Chainlink CCIP connection. It also paused the WEMIX$ Module, PNIX decentralized exchange and trading in affected liquidity pools.
WEMIX withdrew Foundation-supplied liquidity from affected DeFi services to prevent further conversions. Users cannot move assets through the suspended bridges during the shutdown. The Foundation has not said when the services will reopen.
WEMIX is still investigating how the attack happened and how much damage it caused. The figures are preliminary and may change as the Foundation continues tracing transactions and reviewing the affected contract.
WEMIX$ Stablecoin Was Already Being Replaced by USDC.e
WEMIX$ was designed as a USDC-backed stablecoin on the WEMIX3.0 mainnet. Its supply was intended to expand or contract according to the amount of USDC held in the protocol’s treasury.
The Foundation had already started replacing WEMIX$ with USDC.e before the security incident. It announced in March that WEMIX PLAY would end support for WEMIX$ and move selected token pools and services to USDC.e.
Investors Wait for Recovery Update
The WEMIX token fell about 8% over 24 hours after the breach was disclosed, trading near $0.22. Its daily trading volume rose to roughly $3 million during the same period. The Foundation has not provided a timeline for restoring the suspended services, with users and investors now watching for the completion of the investigation and further updates on fund recovery.
