BlockSec: Wanchain's Cardano Bridge Hit in Suspected Exploit, 515M NIGHT Drained
AI Market Summary
BlockSec reports an apparent exploit of Wanchain's Cardano bridge, draining ~515M NIGHT (~$9M) from the bridge treasury, with a suspected signed-message encoding flaw enabling signature reuse. The incident triggered a sharp selloff in NIGHT and raises near-term risk premiums around Cardano-adjacent bridging infrastructure and associated ecosystems. Expect heightened scrutiny of cross-chain security assumptions and potential liquidity fragmentation for assets routed through the bridge.
Impact level
● Medium
Affected assets
ADA/USDT+6.70%
AI Insight · ADA/USDTAI Insight
▼ Bearish
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Blockchain security firm BlockSec said its Phalcon monitoring system flagged a suspected exploit involving Wanchain's Cardano bridge, with about 515 million NIGHT reportedly drained from the bridge treasury.
BlockSec's preliminary assessment points to a potential flaw in the TreasuryCheck validator related to non-injective signed message encoding, a weakness that could allow signature-reuse attacks.
NIGHT is the native token of Midnight, a privacy-focused blockchain project incubated by Input Output (IO), the company behind Cardano. After the report, NIGHT slid more than 30% intraday to around $0.016, marking a record low. At current prices, the diverted tokens are valued at roughly $9 million.
