Security Breach at 402Bridge Initiated by Private Key Leak

The 402Bridge project experienced a security breach, traced to a private key leak, potentially involving insider actions, resulting in the theft of approximately 4.2 ETH transferred to Arbitrum.

This incident marks the first major security breach for 402Bridge, highlighting persistent vulnerabilities in cross-chain bridge protocols and raising concerns about insider threats in the cryptocurrency sector.

Private Key Leak at 402Bridge Raises Insider Concerns

SlowMist’s analysis reveals that the attack on 402Bridge stemmed from a private key leak, leaving insider involvement a possibility. The project’s domain was registered only two days before shutting down, suggesting suspicious preparations. Market observers note that no major statements from project leaders or government bodies are available.

The stolen funds have been moved to the Arbitrum network, but no further transfers have been detected. This incident marks a significant challenge in maintaining security in the industry.

“The 402Bridge attack appears to have originated from a private key leak, and the possibility of insider involvement cannot be ruled out.” — Cosine, Analyst, SlowMist

Lessons from Past Cross-Chain Breaches Impacting DeFi

Did you know? The 402Bridge incident is part of over 49 recorded cross-chain breaches in the past three years, most stem from similar vulnerabilities like private key leaks and contract flaws.

Ethereum, traded as ETH, currently stands at $4,098.38 with a market cap of $494.67 billion, accounting for 12.86% of the market. In the past 24 hours, trading volume reached $38.37 billion, reflecting an 11.15% change, as listed on CoinMarketCap.

The Coincu research team suggests increased regulatory scrutiny, given the frequent incidents targeting cross-chain protocols. Historical trends indicate that systematic improvements in blockchain security implementations are crucial to preventing similar breaches.