The AI-focused blockchain IoTeX suffered a major breach after a compromised private key gave an attacker full access to its token safe and bridge contracts. Early estimates suggested up to $8 million in assets were stolen, including stablecoins and native tokens, though the team later confirmed losses around $2 million.

The hacker quickly moved funds through decentralized exchanges and cross-chain bridges, complicating recovery. The incident caused a sharp drop in the IOTX token and highlighted the vulnerabilities of single-key control and cross-chain infrastructure.

IoTeX is working with security firms and exchanges to trace the stolen assets. The breach underscores the critical need for strong key management, multi-signature wallets, and robust security protocols in AI-blockchain projects.