Arbitrum-Based AFX Trade Loses $24 Million in Bridge Exploit

A protocol built on Arbitrum, AFX Trade, has lost roughly $24.15 million in USDC after attackers exploited its bridge, according to blockchain security firm Blockaid.

Bridge Specific to AFX Targeted

Blockaid flagged the incident Wednesday, noting the exploit was tied specifically to a bridge operated by AFX, not the underlying Arbitrum network. The firm said it is working alongside the Arbitrum team to investigate and coordinate a response with the affected protocol.

Security firm PeckShield reported that the attacker moved the stolen funds from Arbitrum to Ethereum, then swapped them for 12,467 ETH, worth close to $24 million at current prices.

Arbitrum Team Confirms Native Bridge Untouched

Offchain Labs, the company behind Arbitrum, said the transaction came from a third party protocol and that Arbitrum’s native bridge was not compromised in any way. He said his team will work with AFX and share further updates once available.