Midnight, a blockchain project focused on data privacy, lost 515 million NIGHT tokens in a cross-bridge exploit over the weekend. The attack targeted the Wanchain bridge connecting Cardano to BNB Chain, draining the tokens before the team could intervene. The NIGHT token price dropped 32% in the hours after the incident.
How the exploit worked
The attacker exploited a vulnerability in the bridge's smart contract logic, according to Midnight's post-mortem. The bridge, which allows users to move NIGHT tokens between Cardano and BNB Chain, was drained in a single transaction. Midnight said the exploit was a “cross-bridge” attack, meaning the hacker manipulated the bridge's validation process to mint tokens on the destination chain without locking the equivalent on the source chain.
The stolen tokens represent roughly 10% of NIGHT's total supply, though the exact percentage depends on circulating supply figures. Midnight has not yet confirmed whether the tokens were sold or remain in the attacker's wallet.
Immediate response and token price
Midnight paused the bridge and began an investigation. The team said they are working with security firms and law enforcement to track the stolen funds. The NIGHT token price fell from $0.12 to $0.08 following the hack, a 32% drop, before recovering slightly to $0.09. Trading volume spiked as some users rushed to sell while others bought the dip.
The project has not announced any plans to reimburse affected users or to mint replacement tokens. Midnight's governance token, NIGHT, is used for staking and voting on protocol upgrades.
Bridge security under scrutiny
Cross-bridge exploits have become a recurring problem in decentralized finance. The Wanchain bridge, which connects multiple blockchains, has been audited by several firms, but this attack found a gap in the audit scope. Midnight said the vulnerability was not previously disclosed and that they are working on a patch to prevent similar exploits.
The team has not set a timeline for reopening the bridge. Users who had funds locked in the bridge are unable to withdraw them until the investigation concludes.
Midnight plans to release a detailed technical report in the coming days. The project's developers are also reviewing the bridge's code for additional vulnerabilities. The NIGHT token price remains volatile, and the broader market is watching for any signs of a recovery or further sell-offs. Midnight's next scheduled network upgrade is expected to include enhanced bridge security measures.
