{"id":549846,"date":"2026-07-25T10:13:07","date_gmt":"2026-07-25T09:13:07","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=549846"},"modified":"2026-07-25T10:13:42","modified_gmt":"2026-07-25T09:13:42","slug":"two-ethereum-bridges-lose-31-7m-within-hours-as-third-protocol-halts-staking","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/two-ethereum-bridges-lose-31-7m-within-hours-as-third-protocol-halts-staking\/","title":{"rendered":"Two Ethereum bridges lose $31.7M within hours as third protocol halts staking"},"content":{"rendered":"<p>AFX and the Verus-Ethereum bridge suffered about $31.69 million in combined losses within hours of each other, while B\u00b2 Network separately suspended token staking after unauthorized access to a contract upgrade authority.<\/p>\n<p>Blockaid <a href=\"https:\/\/x.com\/blockaid_\/status\/2080080240265621680\">said<\/a> it detected the AFX exploit at about 21:30 UTC on July 22. An Arbitrum <a href=\"https:\/\/arbiscan.io\/tx\/0x50d0b3ec6c3f5fce0f10abf81540bbb508f421494aa2b3480c4a264b0436547b\">transaction<\/a> recorded 24.15 million USDC leaving the bridge operated by AFX, a decentralized trading protocol on Arbitrum.<\/p>\n<p>AFX <a href=\"https:\/\/x.com\/AFX_XYZ\/status\/2080126901205770734\">suspended<\/a> its USDC custody bridge and said the incident was isolated from its trading infrastructure, mainnet, and the Arbitrum network. The affected component was a third-party bridge, not Arbitrum's native bridge.<\/p>\n<p>In preliminary findings <a href=\"https:\/\/x.com\/AFX_XYZ\/status\/2080719238445375532\">published July 24<\/a>, AFX attributed the incident to coordinated social engineering and infrastructure compromise. The protocol said access appeared to begin in a development environment before escalating into internal build infrastructure and validator systems.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/the-next-big-defi-exploit-will-start-before-the-code-is-deployed\/\" class=\"cs-article-embed__link\">\n                    <div class=\"cs-article-embed__media\">\n                <img src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/05\/defi-exploit-update-1024x576.jpg\" alt=\"The next big DeFi exploit will start before the code is deployed\" loading=\"lazy\" decoding=\"async\">\n            <\/div>\n                <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">The next big DeFi exploit will start before the code is deployed<\/h3>\n                            <div class=\"cs-article-embed__summary\">A new malware campaign targeting crypto developers shows how attackers can move upstream, stealing GitHub tokens, SSH keys, cloud credentials, wallets, and environment variables before a protocol ever ships vulnerable code.<\/div>\n                                        <div class=\"cs-article-embed__meta\">\n                                            <span class=\"cs-article-embed__meta-item\">May 26, 2026<\/span>\n                                                                <span class=\"cs-article-embed__meta-divider\">&middot;<\/span>\n                                                                <span class=\"cs-article-embed__meta-item\">Gino Matos<\/span>\n                                    <\/div>\n                    <\/div>\n    <\/a>\n<\/div>\n\n<p>AFX said it was verifying balances, pursuing fund recovery and preparing remediation. As of July 24, it had not announced a completed return of funds or a finalized compensation plan.<\/p>\n<p>Hours after the AFX incident, an Ethereum <a href=\"https:\/\/etherscan.io\/tx\/0xa1f1e65c1cea4dba4ae439cd4dcdba6cc2dbda0ed1228e61f29ae9c9324eb099\">transaction<\/a> showed the Verus bridge releasing 1,137.4528 ETH and seven token transfers. Blockaid <a href=\"https:\/\/x.com\/blockaid_\/status\/2080143099561496896\">valued<\/a> the unbacked payouts at about $7.54 million.<\/p>\n<p><a href=\"https:\/\/x.com\/SlowMist_Team\/status\/2080192064478724299\">SlowMist's analysis<\/a> said the bridge approved eight withdrawals without proving that matching assets backed them. The firm linked the failure to the same broad cross-chain import-validation class as a May exploit, but said the two attacks used different mechanics.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/crypto-users-told-to-pull-funds-after-bridge-failure-exposes-rollup-exit-risk\/\" class=\"cs-article-embed__link\">\n                    <div class=\"cs-article-embed__media\">\n                <img src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/06\/taiko-bridge-1024x576.jpg\" alt=\"Crypto users told to pull funds after Ethereum L2 bridge failure exposes rollup exit risk\" loading=\"lazy\" decoding=\"async\">\n            <\/div>\n                <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Crypto users told to pull funds after Ethereum L2 bridge failure exposes rollup exit risk<\/h3>\n                            <div class=\"cs-article-embed__summary\">The incident forced users to confront the part of rollup security that usually stays invisible: whether they can still withdraw when the bridge layer breaks.<\/div>\n                                        <div class=\"cs-article-embed__meta\">\n                                            <span class=\"cs-article-embed__meta-item\">Jun 23, 2026<\/span>\n                                                                <span class=\"cs-article-embed__meta-divider\">&middot;<\/span>\n                                                                <span class=\"cs-article-embed__meta-item\">Liam &#039;Akiba&#039; Wright<\/span>\n                                    <\/div>\n                    <\/div>\n    <\/a>\n<\/div>\n\n<p>B\u00b2's incident was not disclosed as a bridge exploit. The network <a href=\"https:\/\/x.com\/BSquaredNetwork\/status\/2080077286238454109\">said<\/a> there was unauthorized access to its staking contract's upgrade authority. B\u00b2 suspended normal staking during security reviews, said the issue was contained, and promised full compensation to affected users. It had not documented completed restitution as of July 24.<\/p>\n<p>B\u00b2 also offered a manual exit: users could request unstaking through its official Discord, with ownership-verified requests to be processed within one business day. The network did not state a loss amount, so its incident is excluded from the $31.69 million bridge-loss total. Until normal staking resumes, that manual review is the route B\u00b2 offered users seeking to withdraw staked tokens.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/defis-automated-yield-protocols-retail-risk\/\" class=\"cs-article-embed__link\">\n                    <div class=\"cs-article-embed__media\">\n                <img src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/05\/defi-automated-yield-risk-1024x576.jpg\" alt=\"DeFi\u2019s automated yield protocols were built for retail, now they just add another layer of risk\" loading=\"lazy\" decoding=\"async\">\n            <\/div>\n                <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">DeFi\u2019s automated yield protocols were built for retail, now they just add another layer of risk<\/h3>\n                            <div class=\"cs-article-embed__summary\">Stake DAO\u2019s vsdCRV exploit shows how automated yield products can turn DeFi complexity into a black box for retail users.<\/div>\n                                        <div class=\"cs-article-embed__meta\">\n                                            <span class=\"cs-article-embed__meta-item\">May 28, 2026<\/span>\n                                                                <span class=\"cs-article-embed__meta-divider\">&middot;<\/span>\n                                                                <span class=\"cs-article-embed__meta-item\">Gino Matos<\/span>\n                                    <\/div>\n                    <\/div>\n    <\/a>\n<\/div>\n\n<p>The three episodes exposed different controls outside base-chain consensus. AFX's custody and validator infrastructure, Verus's bridge-accounting checks, and B\u00b2's staking-contract upgrade authority each became the point where normal access failed.<\/p>\n<p>For users, the next test is whether recovery plans return funds, whether cross-chain validation verifies economic backing and whether upgrade authority is protected without making emergency exits depend on manual intervention.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>About $31.69M in combined bridge losses and B\u00b2&#8217;s July 22 staking suspension reveal three distinct control failures.<\/p>\n","protected":false},"author":1264,"featured_media":550052,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76799,46940,77968,77494,9836,60206],"tags":[79314,72190,79128,75695,76824],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin 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