AFX Protocol reportedly loses $24M in bridge exploit

Report of $24M Loss

AFX Protocol, a decentralized perpetual exchange operating on Arbitrum, reportedly lost $24.15 million on Wednesday in an exploit targeting one of its crosschain bridges. Offchain Labs said the incident involved a third-party protocol and did not affect Arbitrum’s native bridge infrastructure.

Details from Security Firms

Blockaid said Wednesday it detected an exploit at 9:30 p.m. UTC targeting a bridge operated by AFX. Lookonchain said the exploiter bridged 24.15 million USDC to Ethereum, buying 12,467 ETH at an average price of $1,937.

Official Statement

Offchain Labs co-founder Stephen Goldfeder confirmed a bridge hack had affected a third-party protocol. “We’re aware of a report of a bridge hack on Arbitrum and are investigating. We can confirm that the transaction in question originated from a third-party protocol, and the Arbitrum native bridge has not been hacked or exploited in any way,” Goldfeder said in a post on X.

Ongoing Investigation

This is a developing story and more information will be added as it becomes available.