Wanchain Bridge Exploit Drains 515M Bridged NIGHT Tokens; NIGHT Slides 28% as Midnight Denies Network Breach

Cardano's Midnight ecosystem is under scrutiny after an apparent exploit tied to the Wanchain bridge reportedly siphoned roughly 515 million bridged NIGHT tokens from the bridge's treasury, according to blockchain security firm BlockSec. Midnight said its own network was not compromised, attributing the incident to the third-party Wanchain bridge that links Cardano to BNB Chain. The Midnight Foundation said it is monitoring developments and coordinating with partners to determine what occurred, urging users to rely on official updates. It also warned the community to watch for impersonation accounts and phishing attempts. BlockSec's preliminary assessment indicated the vulnerability may relate to how the bridge handled signed messages, potentially allowing a signature to be reused. Cardano DRep Dori echoed that the issue did not originate on the Midnight network and highlighted the additional risk inherent in bridge-based assets. The commentary pointed to trust-minimized bridge designs such as BitVM as a potentially safer path forward. Markets reacted swiftly. NIGHT fell more than 28% after the reports surfaced, briefly dropping to around $0.016—its lowest level since launch—before paring losses to trade near $0.0195 at the time of writing. Based on prevailing prices, the reportedly stolen tokens were valued at about $9 million. Trading activity spiked, with daily volume above $166 million and market capitalization near $324 million. While NIGHT absorbed the brunt of the selloff, ADA showed tentative signs of stabilizing. Market analyst MCO Global said Cardano had met another downside target and was attempting to settle, with a potential move toward $0.23 if buyers step in—a technical view, not financial advice. The analyst added that the broader bearish trend remains intact and that any stronger recovery would require further confirmation. The incident has put the spotlight back on third-party bridge risk. Midnight continues to maintain its blockchain was not breached, but the episode underscores how bridge vulnerabilities can quickly spill over into connected token markets.