Private Key Leak in 402bridge Hack Drains $17.7K USDC
Recently, the 402bridge hack triggered by a private key leak compromised the cross-chain bridge. Attackers gained control of the 402bridge contract via a leaked private key and the address 0x2b8F95560b5f1d1a43994d15028F95560b5f1d1a43994d150286, then abused unlimited USDC approvals through the transferUserToken function. In minutes, they siphoned 17,693 USDC from over 200 users and converted the funds into 4.2 ETH on Arbitrum. The attacker’s site, 402bridge.fun, registered two days earlier, went offline immediately after the hack.
Security firm SlowMist flagged possible insider involvement. The 402bridge team has reported the incident to law enforcement and is exploring fund recovery. Traders are urged to revoke all 402bridge token approvals and keep an eye on cross-chain bridge security trends. This 402bridge hack underscores critical governance and private key management gaps in fast-evolving DeFi projects.
Neutral
The 402bridge hack, resulting from a private key leak, directly drains user USDC and exposes critical security flaws in cross-chain bridges. While the total loss (17.7K USDC) is small relative to stablecoin markets, the incident heightens risk sentiment around DeFi protocols and could prompt traders to reduce exposure to vulnerable bridges in the short term. However, USDC’s peg remains stable and no systemic risk has emerged, making the overall market impact neutral. Long-term, this hack may drive stronger security practices and more cautious bridge usage, stabilizing sentiment once measures are adopted.