CrossCurve Bridge Exploited for $3M; CEO Offers 10% Bounty, 72‑Hour Return Window
CrossCurve (formerly EYWA), an integrated liquidity protocol with Curve Finance, confirmed a cross‑chain bridge exploit that drained roughly $3 million after attackers bypassed validation in the ReceiverAxelar contract. Security researchers (Defimon Alerts / Decurity) reported attackers used spoofed cross‑chain messages to call expressExecute on ReceiverAxelar, triggering PortalV2 unlocks and enabling multi‑chain withdrawals. CrossCurve paused platform activity, identified 10 implicated wallet addresses, and urged users to stop interacting with affected contracts. CEO Boris Povar offered a 10% SafeHarbor bounty for returned funds and set a 72‑hour return window, warning of legal action and law‑enforcement coordination if tokens are not returned. Curve Finance advised users to reassess pool exposure and vote allocations tied to CrossCurve. On‑chain monitors (Arkham, Defimon Alerts) showed PortalV2 balances falling to near zero around Jan. 31. The incident follows other recent bridge-related breaches and underscores persistent cross‑chain and smart‑contract risks for liquidity providers, voters and counterparties. Traders should reassess exposure to CrossCurve pools, consider withdrawing or rebalancing positions, and monitor on‑chain movement of the 10 flagged addresses and any addresses returning funds.
Bearish
The exploit directly impacts CrossCurve and associated liquidity pools, increasing short‑term sell pressure and risk premia for assets tied to the protocol. Immediate effects: liquidity providers and voters are likely to withdraw or reduce exposure, which can depress prices of tokens concentrated in CrossCurve pools and lower TVL‑linked sentiment. The announcement of a paused platform and flagged addresses raises uncertainty and illiquidity, a typical bearish trigger for the protocol’s token and LP positions. Over the medium term, market confidence may recover if funds are returned or recovered and audits/remediations are implemented, but persistent bridge vulnerabilities and follow‑on incidents can sustain higher risk premiums and cap upward price movement. For traders: expect increased volatility and potential discounting of CrossCurve‑linked assets; consider reducing exposure, tightening stops, or shorting vulnerable LP tokens until risk is resolved and on‑chain signs of remediation appear.