A cross-chain bridge used by AFX Protocol was exploited over the weekend, draining roughly $24 million in digital assets. The incident targeted a third-party bridge, not Arbitrum's own infrastructure, according to Offchain Labs, the development firm behind the Arbitrum network.
What happened
Attackers found a vulnerability in the bridge connecting AFX Protocol to other blockchains. The exploit allowed them to siphon funds from the bridge's liquidity pools. AFX Protocol confirmed the loss on social media and said it is working with security firms to trace the stolen assets. The protocol has paused all bridge operations while the investigation continues.
Offchain Labs' response
Offchain Labs quickly clarified that the exploit did not touch Arbitrum's native bridge, which remains secure. The company stated the incident involved a third-party protocol and did not affect Arbitrum's native bridge infrastructure. This distinction matters because Arbitrum is a popular Ethereum layer-2 scaling solution, and any perceived vulnerability could shake user confidence. By drawing a clear line between the compromised third-party bridge and its own system, Offchain Labs aimed to reassure the broader Arbitrum ecosystem.
Impact on users and the protocol
The $24 million loss is significant for AFX Protocol, a decentralized finance platform that relies on its bridge for cross-chain transfers. Users who had assets locked in the bridge face potential losses, though the protocol has not yet announced a compensation plan. The exploit highlights ongoing risks in the DeFi space, where bridges remain a frequent target for attackers. According to data from blockchain security firms, bridge hacks have accounted for over $2 billion in losses across the industry in the past two years.
AFX Protocol has not set a timeline for reopening its bridge. The team is conducting a full security audit and working with law enforcement. Offchain Labs said it will continue to monitor the situation but offered no further comment. For now, users are advised to avoid using the affected bridge and to revoke any contract approvals tied to it.
