IoTeX Wallet Hack Drains $4.3M; IOTX Price Drops on Private‑Key Compromise
IoTeX confirmed an on‑chain security breach after analysts detected unusual activity in an internal token vault caused by a suspected private‑key compromise. Attackers withdrew roughly $4.3 million in USDC, USDT, IOTX and WBTC, swapped assets into ETH and bridged about 45 ETH onward toward Bitcoin. Blockchain investigator Specter published transaction records and attacker addresses; IoTeX says early loss estimates are lower than some market reports. The team is working 24/7 with exchanges, compliance teams and forensic partners to trace funds, flag attacker wallets and request freezes. Core network operations remain functional. Market reaction included an intraday IOTX decline of about 6–7% to near $0.0049, increased volatility and technical indicators moving toward oversold territory; short‑term support sits near $0.0046–$0.0049 with resistances around $0.0050–$0.0053. Traders should monitor on‑chain flows, exchange freeze actions and liquidity; tighten risk management, watch for further sell pressure and potential token drains or wash trading that could affect order books.
Bearish
A confirmed private‑key compromise and the ensuing $4.3M theft directly increase downside risk for IOTX. Short‑term impacts are likely negative: the selloff of drained tokens, swaps into ETH and cross‑chain bridging reduce liquidity on IoTeX markets and can trigger additional sell pressure and wider spreads. Intraday technicals (6–7% decline, RSI into oversold) show momentum to the downside; key supports identified near $0.0046–$0.0049 could be tested. Exchange freezes or recovered funds would mitigate downside, but uncertainty and reputational damage can depress demand and prolong volatility. Over the medium term, if IoTeX transparently contains the breach, recovers funds and strengthens custody controls, price pressure may ease. However, repeated custody failures historically cause sustained negative sentiment, so traders should treat this as predominantly bearish for IOTX until forensic outcomes and fund recoveries reduce uncertainty.