IoTeX Offers 10% Bounty to Hacker Who Stole $4.4 Million in Cross-Chain Bridge Exploit

IoTeX, a leading blockchain platform focused on the Internet of Things (IoT), has taken an unprecedented step in the wake of a devastating exploit on its cross-chain bridge, ioTube. The company is offering a 10% white-hat bounty—worth approximately $440,000—to the hacker or hackers responsible for siphoning $4.4 million in digital assets, in exchange for the voluntary return of the stolen funds within 48 hours.

The exploit, which occurred on February 21, 2026, was traced to a compromised validator owner private key on the Ethereum side of ioTube. This breach allowed unauthorized control over the bridge contracts, enabling the attacker to drain millions of dollars in assets. IoTeX co-founder and CEO Raullen Chai confirmed the incident in a public statement, emphasizing that the company’s Layer 1 blockchain remains unaffected and that the breach was isolated to the bridge’s Ethereum-side infrastructure.

In a bold move, IoTeX has sent an on-chain message to the hacker, offering immunity from legal action and promising not to share identifying information with law enforcement if the remaining funds are returned. The message, signed by Chai, also warned that all fund movements across Ethereum, IoTeX, and Bitcoin have been fully traced, and that exchange deposits have been flagged and frozen.

“We are committed to resolving this issue transparently and fairly,” Chai stated. “Our priority is to recover the stolen funds and ensure the security of our users.”

A Growing Trend in Crypto Exploits

The ioTube exploit is the latest in a string of high-profile attacks targeting cross-chain bridges, which have become a prime target for advanced threat actors. According to industry reports, more than $3.2 billion has been lost to cross-chain bridge hacks in recent years, making them one of the most vulnerable components of the crypto ecosystem.

Cross-chain bridges, which facilitate the transfer of assets between different blockchains, have been described as the “Achilles’ heel” of the crypto industry. The ioTube breach underscores the critical need for robust security measures and highlights the ongoing challenges in safeguarding decentralized finance (DeFi) infrastructure.

The Fallout and Recovery Efforts

In the wake of the exploit, IoTeX’s native token, IOTX, plummeted by roughly 22%, dropping from $0.0054 to below $0.0042 before partially rebounding. The company has since rolled out a new chain version, Mainnet v2.3.4, which includes a default blacklist of malicious externally owned account (EOA) addresses to prevent further unauthorized activity.

IoTeX has also identified four Bitcoin addresses holding approximately 66.78 BTC, worth around $4.3 million at current prices. These addresses are being closely monitored in cooperation with exchanges, and the company has urged the hacker to return the funds voluntarily.

“The assets with actual market value were swapped and bridged, making recovery extremely difficult,” said Nick Motz, CEO of ORQO Group and CIO of Soil. “Containment is not the same as recovery, and the prospects for retrieving the stolen funds remain uncertain.”

Responsibility and Key Control

The ioTube exploit has reignited debates about responsibility and key control in the crypto industry. While IoTeX has framed the incident as an operational issue specific to the bridge, critics argue that the company bears responsibility for the security of its infrastructure.

“When you build and operate the bridge infrastructure and the key management fails, it’s difficult to separate yourself from that outcome,” Motz said. Nanak Nihal Khalsa, co-founder of human.tech, echoed this sentiment, emphasizing that whoever holds the private key is responsible for securing it.

“This is how the industry works right now,” Khalsa said. “But it’s clear that stronger wallet and multisig setups are needed to reduce similar risks in the future.”

A Bold Strategy to Recover Stolen Funds

IoTeX’s decision to offer a bounty to the hacker is a high-stakes gamble aimed at recovering the stolen funds. While the move has drawn mixed reactions, it reflects the company’s commitment to transparency and accountability in the face of a major security breach.

“If the hacker returns the funds, it could set a precedent for how the industry handles similar incidents,” said Motz. “But if the funds are not recovered, it will serve as a stark reminder of the risks associated with cross-chain bridges.”

As the crypto industry continues to grapple with the challenges of securing decentralized infrastructure, the ioTube exploit serves as a wake-up call for developers, investors, and users alike. The outcome of IoTeX’s bounty offer could have far-reaching implications for the future of cross-chain bridges and the broader DeFi ecosystem.

Tags & Viral Phrases:

• IoTeX cross-chain bridge hack
• $4.4 million stolen in crypto exploit
• Hacker offered 10% bounty to return funds
• Private key compromise in DeFi
• Cross-chain bridges under attack
• IoTeX IOTX token crashes 22%
• Crypto security breach 2026
• White-hat bounty for hackers
• DeFi bridge vulnerabilities exposed
• IoTeX Mainnet v2.3.4 update
• Bitcoin addresses holding stolen funds
• Crypto industry’s biggest failure points
• $3.2 billion lost to bridge hacks
• IoTeX CEO Raullen Chai speaks out
• Recovery efforts for stolen crypto
• Key control and responsibility in crypto
• Multisig setups to prevent hacks
• DeFi infrastructure security risks
• IoTeX offers immunity to hacker
• Crypto exploit recovery strategies

,