AFX Trade, a decentralized exchange built on Arbitrum, lost $24.15 million in USDC after a hacker compromised its bridge validator keys. The platform has responded by offering a 30% bounty to the attacker in exchange for returning the stolen funds.
How the Hack Happened
The breach targeted the exchange's bridge validators — the infrastructure that secures cross-chain transfers. By gaining control of the validator keys, the hacker was able to drain $24.15 million worth of USDC from the protocol. AFX Trade confirmed the incident but has not yet disclosed how the keys were compromised or whether any user funds beyond the bridge pool were affected.
The Bounty Offer
In an unusual move, AFX Trade publicly offered the hacker a 30% bounty — roughly $7.25 million — to return the remaining funds. The offer is a gamble: it could incentivize the attacker to give back the money, or it might simply confirm the exploit's success. The exchange has not set a deadline for the bounty, nor has it specified how the return would be handled.
What This Means for Users
AFX Trade is a perpetuals DEX on Arbitrum, meaning users trade derivatives with leverage. The stolen USDC came from the bridge, which is used to move assets between chains. If the bridge remains frozen, users may face delays in withdrawals or deposits. The platform has not announced a timeline for restoring normal operations.
The hack adds to a growing list of cross-chain bridge exploits. While AFX Trade's total losses are smaller than some recent attacks, the compromise of validator keys raises questions about the security of Arbitrum-based bridges.
Next Steps
AFX Trade has not said whether it will involve law enforcement or pursue other recovery options. The hacker has not yet responded to the bounty offer. For now, users are left waiting to see if the attacker takes the deal — or if the exchange will have to absorb the loss.
