Hyperbridge revises exploit losses to $2.5M, traces funds to Binance

Hyperbridge has revised the financial impact of its recent Token Gateway exploit, increasing the estimated loss from roughly $237,000 to approximately $2.5 million following a fuller forensic assessment. The update comes days after the team confirmed that an attacker exploited a flaw in its proof verification system to mint and dump bridged DOT tokens.  The revised figures highlight a significantly larger impact than initially reported, as more activity across multiple chains was accounted for. Revised assessment reveals multi-phase attack According to Hyperbridge, the exploit unfolded in two phases. An initial extraction of around 245 ETH was followed by a larger event in which the attacker minted approximately 1 billion bridged DOT tokens. These tokens were then sold into available liquidity across connected EVM networks, including Ethereum, Base, BNB Chain, and Arbitrum.  While early estimates focused on visible sell-offs in Ethereum, the updated assessment incorporates losses across all affected chains, along with associated liquidity incentives. The team confirmed that the vulnerability was linked to flaws in Merkle Mountain Range [MMR] proof verification logic, allowing forged cross-chain messages to be accepted. Funds traced as recovery efforts begin Hyperbridge said it has traced a significant portion of the exploited funds on-chain, with some routed to Binance. The team is now working with the exchange's compliance unit and law enforcement agencies to freeze and recover assets. However, it noted that recovery timelines in such cases can extend over several months or longer, depending on coordination and investigation outcomes. If recovery efforts fall short, Hyperbridge said it plans to compensate affected users by allocating its native BRIDGE tokens. Details will be finalised at a later stage. Bridge remains paused as fixes are developed All bridging activity through the Token Gateway remains paused while the team works on a comprehensive patch and conducts external audits. Operations will only resume once the vulnerability is addressed and additional safeguards are in place. The team added that the exploit was isolated to the Token Gateway and did not affect other parts of the protocol, including its Intent Gateway product. Token reaction reflects ongoing pressure The protocol's native token has also reflected the impact of the incident. BRIDGE has trended lower following the exploit, with recent price action showing a sharp sell-off after a brief spike. Momentum indicators remain subdued, with the Relative Strength Index hovering near oversold territory, suggesting limited buying strength in the short term. Final Summary Hyperbridge has revised losses from its Token Gateway exploit to approximately $2.5 million, reflecting a broader multi-chain impact than initially reported. With funds traced to Binance and recovery efforts underway, the incident remains ongoing, with compensation and technical fixes still in development.