- AFX offered the attacker a 30% bounty for returning 70% of the $24M stolen assets while isolating its compromised bridge.
- Blockaid confirmed the exploit targeted an AFX-operated bridge while Arbitrum confirmed its native infrastructure remained secure throughout the investigation process.
- PeckShield traced the stolen USDC into Ethereum as AFX suspended bridge operations and pursued fund recovery through a white settlement.
AFX Trade has extended a white hat settlement offer to the attacker responsible for draining approximately $24 million from its custody bridge. According to Ken C, the protocol’s head of growth, the hacker may keep 30% of the stolen funds by returning the remaining 70%, as the team prioritizes recovering user assets.
According to blockchain security firm Blockaid, the exploit targeted an AFX-operated bridge, draining roughly $24.15 million in USDC before the funds left the protocol. Moreover, Blockaid stated that it is working with both the Arbitrum team and AFX to investigate the incident as the stolen funds drew widespread attention across the blockchain security community.
Blockchain security firm PeckShield reported that the attacker transferred the stolen assets from Arbitrum to Ethereum and swapped them for 12,467 ETH worth approximately $24 million. Meanwhile, Offchain Labs Chief Executive Officer Steven Goldfeder wrote on X that investigators confirmed the exploit originated from a third-party protocol, not Arbitrum’s native bridge.
Additionally, Goldfeder clarified that Arbitrum itself had not been hacked and added that the team is coordinating with AFX while preparing further updates on the investigation.
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AFX Isolates Bridge While Recovery Efforts Begin
According to Ken C on X, AFX is encouraging the attacker to accept the white hat settlement before the offer expires. He explained that the protocol’s immediate objective is to recover as many user assets as possible through cooperation.
Besides negotiating with the attacker, AFX suspended bridge operations immediately after detecting the exploit. That measure was intended to stop any further unauthorized activity while investigators assessed the affected infrastructure.
Furthermore, the protocol released an initial assessment indicating that the compromise appears limited to the AFX-operated custody bridge. AFX emphasized that its trading infrastructure, mainnet, and the broader Arbitrum network remain unaffected.
Consequently, users of the protocol’s other services have not been impacted by the exploit based on current findings. Investigators are still examining the bridge to determine how the attacker gained access and whether additional safeguards are required.
Bridge exploits remain among the most costly attack methods in decentralized finance because they often target large pools of digital assets. As a result, security firms are closely tracking fund movements while coordinating with affected protocols whenever large-scale incidents occur.
Conclusion
AFX continues working with security partners to trace the stolen funds and recover user assets. According to statements from the protocol and Arbitrum representatives, the investigation remains focused on the compromised custody bridge while the broader Arbitrum network continues operating normally.
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