Gravity Bridge Halts After $5.4M Hack, USDC/ETH/USDT Stolen
Gravity Bridge halted operations after a reported $5.4M cross-chain hack, triggering validators to stop bridge-related actions while teams investigate a suspected key compromise. PeckShield reports the attacker drained about $4.3M in USDT/USDC and ETH-linked assets, including 274 wETH (~$553k), $434k in USDT, plus 14.164 PAX Gold (~$64k). Gravity Bridge also stopped transfers to reduce further loss during the review.
On-chain tracking indicates funds were rapidly moved, with laundering activity involving ChangNow and Binance. Investigators estimate the attacker still holds over 2,100 ETH (about $4.23M), creating an overhang for remaining funds and liquidity. Separately, SlowMist suggests the exploit may involve a compromised signing key or contract key enabling unauthorized withdrawals.
For traders, this Gravity Bridge incident is a short-term risk-off signal for bridge liquidity. Expect volatility in bridge-linked tokens and related cross-chain positioning as markets reprice smart-contract and key-management risk.
Bearish
This is bearish for bridge-linked crypto risk rather than a direct, single-coin price catalyst. Gravity Bridge has been halted after a multi-asset theft, and investigators say the attacker still holds a large ETH amount. In the short term, this raises uncertainty around bridge liquidity, TVL drawdowns, and potential follow-on withdrawals—typically pressuring bridge and cross-chain narratives. Over the longer term, repeated bridge incidents can increase perceived smart-contract and key-management risk, which can keep capital moving cautiously toward safer venues and slow liquidity recovery until audits and withdrawal controls are proven.