WuBlockchain
BlockSec's Phalcon said Wanchain's Cardano bridge was reportedly exploited, draining approximately 515 million NIGHT from the bridge treasury. At current prices, the tokens are worth roughly $9 million.
Why it matters
Initial analysis points to non-injective signed-message encoding in the TreasuryCheck validator. The suspected flaw could allow signatures to be reused across messages, weakening the authorization process protecting treasury funds.
NIGHT is the native token of Midnight, a privacy-focused blockchain project incubated by Input Output, the company behind Cardano. The incident therefore touches infrastructure connecting two closely linked blockchain ecosystems.
Market impact
NIGHT fell more than 30% intraday to around $0.016 following the reported exploit, setting a record low. The investigation is now centered on the validator's message encoding and whether signature reuse enabled the treasury drain.
Frequently asked questions
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How much NIGHT was reportedly drained from the bridge?
Approximately 515 million NIGHT was reportedly removed from the Wanchain Cardano bridge treasury. The tokens were worth roughly $9 million at current prices.
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What vulnerability may have enabled the treasury drain?
Initial analysis points to non-injective signed-message encoding in the TreasuryCheck validator, which may have enabled signature reuse attacks.
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How did NIGHT react to the reported exploit?
NIGHT fell more than 30% intraday to around $0.016, marking a record low.
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What is NIGHT and how is it connected to Cardano?
NIGHT is the native token of Midnight, a privacy-focused blockchain project incubated by Input Output, the company behind Cardano.
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What are investigators examining in the bridge validator?
The investigation is focused on the TreasuryCheck validator's message encoding and whether its design allowed signatures to be reused.
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