Qubic Restarts Chain After $1.4M QU Wallet Theft

| blocktempo.com
Qubic has restarted its layer-1 blockchain and opened a claims process after a wallet seed-generation flaw enabled the theft of about $1.4 million in QU—roughly 2.94 trillion tokens—from 1,404 wallets. The network was halted on October 18 and resumed on October 19 after Computors approved a recovery plan. The vulnerability involved a random-number generator that could create predictable wallet seeds on certain Apple devices and browsers. Qubic says initial funds have been returned to verified owners, but it has not disclosed how much was repaid or how many claims were approved. A fuller technical report is expected. Affected users can submit claims through the official recovery portal by May 1, 2027. Qubic advises anyone who created a web wallet before version 4.26.4 to generate a new recovery phrase and move any remaining funds to a new wallet—even if the old wallet was not drained. Updating the app alone does not secure an existing seed. Because compromised seeds may enable attackers to produce valid wallet signatures, claims require additional proof of ownership. The recovery process and resumed network activity may help rebuild confidence in Qubic, but the theft underscores security and trust risks for QU holders. Traders may watch claim repayments, network activity and further security updates for signs of how the incident is affecting sentiment.
Bearish
The incident is a near-term negative for QU because the theft and temporary chain halt can weaken confidence in the wallet infrastructure and the project’s ability to protect users. Traders may price in added security risk, uncertainty around the amount and timing of repayments, and the possibility of further selling by affected holders. Restarting the chain, opening claims and returning some funds are mitigating developments that could limit pressure if the process is transparent and effective. Over the longer term, a completed recovery, a credible technical report and evidence that the vulnerability has been fixed could help restore confidence. Until those indicators emerge, the security breach is likely to weigh more heavily on sentiment than the recovery steps support it.