Security Breach Drains 1,404 Qubic Wallets, $1.3 Million Stolen

In a significant incident on October 17, Qubic reported the unauthorized draining of 1,404 wallets, resulting in a loss of about 2.94 trillion QU tokens, equivalent to approximately $1.3 million. The exploit did not involve hacking the blockchain directly, but rather took advantage of predictable wallet recovery seeds, a vulnerability that stemmed from older software applications.

Details of the Exploit

The unauthorized transfers transpired between 23:42 UTC on Saturday and 01:26 UTC on Sunday. The network’s validators, known as Computors, acted swiftly to halt further transactions at block number 85,371,949. The underlying issue was traced back to insufficient randomness in the generation of 55-character wallet seeds, allowing the attacker to forecast a limited pool of potential seeds and thus target specific wallets containing funds.

Vulnerable Software and Immediate Fixes

Wallets that fell victim to the exploit included those utilizing seed generation on older versions of iPhones, iPads, and Macs using Safari, as well as outdated versions of Qubic’s iOS application. In response to the situation, developers have issued a correction in version 4.26.4 of the software and successfully secured additional funds that were at risk.

Aftermath and Current Status of Stolen Tokens

Following the breach, a significant portion of the stolen funds remains frozen. Approximately 87.1% of the 2.94 trillion QU tokens were effectively stuck on the Qubic network due to the suspension of transactions. Meanwhile, 12.9% reached the cryptocurrency exchange MEXC, which promptly froze the affected account to prevent further misuse. The status of QEARN stakes appears to be unaffected, and the Bitget exchange has also suspended QUBIC deposits and withdrawals as part of maintenance efforts.

Qubic’s Controversial Background

Founded by Sergey Ivancheglo, known in the crypto community as “Come-from-Beyond,” Qubic has experienced a contentious history, including its controversial claims of having majority control over Monero’s mining hashrate in 2025. The latest breach brings to light vulnerabilities within its own wallet software, compelling the project to confront its security protocols as users await potential compensation.

Conclusion

As Qubic evaluates its options for restitution, this incident highlights the importance of robust security measures in cryptocurrency wallets. The ongoing situation will be closely watched by both stakeholders and the wider crypto community.