The Arbitrum-based platform AFX Trade suffered a $24 million loss after an attacker gained control of enough hot-validator signatures to authorize a fraudulent withdrawal, according to security firms. The exploit allowed the attacker to approve a 24.15 million USDC withdrawal, exploiting weaknesses in the platform's bridge signing process rather than any flaw in the underlying network. Arbitrum clarified that its native bridge was not affected by the incident, distancing the layer-2 network's core infrastructure from the breach. The compromise of hot-validator keys highlights ongoing security risks tied to bridge architectures, which have repeatedly been targeted in high-value crypto thefts. Details about how the keys were obtained and whether any funds can be recovered were not immediately disclosed. The incident adds to a growing list of bridge-related exploits that continue to challenge cross-chain security across the industry.
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