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Hyperbridge Raises Exploit Loss Estimate to $2.5 Million After Token Gateway Breach

A proof-checking bug let an attacker forge messages, prompting a freeze on bridging until a fix is audited.

Overview

  • Hyperbridge raised its estimate of realized losses to about $2.5 million after a full review of the April 13 Token Gateway exploit.
  • In bridge systems that mint token copies on other networks, a bug in Hyperbridge’s Merkle Mountain Range proof check let the attacker forge a message and mint roughly 1 billion fake DOT.
  • The theft unfolded in two stages as the attacker first withdrew about 245 ETH, then dumped the unauthorized DOT into thin decentralized exchange liquidity.
  • Damage was limited to bridged token contracts on Ethereum, Base, Arbitrum, and BNB Chain, and the team said native DOT on Polkadot was not affected.
  • Hyperbridge paused bridging and is working with Binance and law enforcement to recover funds, and it may allocate BRIDGE tokens to cover any shortfall given a recovery timeline that could stretch months.