The CEO of Wemix Foundation addressed the hack leading to over $6 million in losses, asserting transparency despite the delay in the announcement.
Details of the Wemix bridge attack
On February 28, over 8.6 million WEMIX tokens were withdrawn from the Play Bridge Vault, which facilitates transfers to other blockchains. The official announcement came four days later. According to Kim Seok-hwan, the delay was necessary to prevent further attacks and market panic.
Risks of premature announcements
The hacker accessed the system by stealing the authentication key for the Nile NFT platform's monitoring system. There were 15 attempts to withdraw funds, with 13 successful transactions. Upon discovering the hack, servers were shut down for analysis, and a report was filed with Seoul's Cyber Investigation Team. Kim explained that without knowing the penetration method, announcing the hack too early could have led to further attacks.
Market reaction and token price drop
Despite efforts to minimize panic, the WEMIX token's value dropped nearly 40% from the exploit to the announcement, declining from $0.70 to $0.42. Currently, it trades at $0.58, still 17% lower than before the hack.
The hack on Wemix's bridge resulted in significant losses and investor panic, highlighting the critical need for effective security and timely communication in the crypto industry.
