WEMIX Halts Operations After $724K Drained via Unauthorized Stablecoin Issuance

Woofun AI reports that Layer-1 network WEMIX has suspended all bridge connections to its WEMIX3.0 infrastructure following a security breach involving unauthorized issuance of its native stablecoin, WEMIX$. The incident resulted in the exfiltration of assets valued at approximately $724,000, primarily in the form of USDC.e, after an attacker compromised contract ownership.

The attack sequence initiated on Sunday at 9:17 UTC, when the intruder minted 5.23 million WEMIX$ tokens without authorization. These newly created tokens were immediately swapped for 30,736 WEMIX governance tokens and 724,198.27 USDC.e, establishing the initial value extraction vector.

Woofun AI data shows the stolen USDC.e was subsequently bridged to Ethereum and BNB Smart Chain networks. From there, the assets were converted into Ether and Tether’s USDT, then distributed across multiple addresses, with some funds deposited into centralized exchanges. To contain the breach, WEMIX halted operations for Chainlink CCIP, the PLAY Bridge, and the PNIX decentralized exchange, while also pausing the WEMIX$ Module and withdrawing foundation liquidity.

The company has identified the attacker’s wallets and requested asset freezes from exchanges and stablecoin issuers, noting that some platforms have already acted. While the full impact remains under investigation, the preliminary loss figure stands at 724,000, marking a significant operational disruption for the network.