A derivatives exchange that settles trades in USDC was hit by an exploit on July 22, losing roughly $24.15 million. The attack targeted a bridge the protocol operates on Arbitrum, according to security firm Blockaid, which detected the incident at 21:30 UTC.
How the exploit unfolded
Blockaid flagged the breach late on July 22. The attacker drained about $24.15 million from AFX Trade's bridge on Arbitrum, a layer-2 network. The exchange uses USDC, a stablecoin, for settlement. Details on how the bridge was compromised remain limited. The company has not yet released a public statement about the incident.
What's at stake for users
AFX Trade's users face potential losses tied to the stolen funds. The exchange's bridge is a critical piece of infrastructure, moving assets between chains. Without a clear recovery plan, affected customers may be left waiting. The exploit adds to a growing list of bridge attacks in crypto, where vulnerabilities often lead to multimillion-dollar thefts.
Blockaid's role in detection
Blockaid, a blockchain security firm, spotted the exploit at 21:30 UTC on July 22. The company monitors on-chain activity for suspicious transactions. Its detection came after the funds had already been moved. Whether Blockaid or other parties can help trace or freeze the stolen assets is unclear.
What happens next
AFX Trade has not announced a timeline for a post-mortem or any compensation plan. Users and investors are waiting for the exchange to confirm the full extent of the loss and outline next steps. The incident is the latest reminder of the risks tied to cross-chain bridges.
