Midnight's NIGHT token took a sharp hit this week after an exploit on the Wanchain bridge drained 515 million tokens — worth roughly $13.2 million at the time. The attacker exploited a signature reuse vulnerability in the cross-chain bridge infrastructure, not in Midnight's own code or Cardano's base layer. NIGHT fell about 30% as the market reacted to the sudden liquidity disruption and uncertainty over whether the stolen tokens can be recovered.
How the exploit worked
The breach targeted the Wanchain bridge, a piece of infrastructure that lets assets move between blockchains. According to details that emerged after the incident, the attacker reused a valid signature to trick the bridge into releasing NIGHT tokens multiple times. Wanchain responded by pausing the affected bridge route, limiting further damage. The exploit did not compromise Cardano's Layer-1 validator nodes or Midnight's own validator infrastructure — the problem was isolated to the bridge's smart contracts.
Market reaction
NIGHT's price dropped roughly 30% in the hours following the news. The sell-off wasn't just about the direct loss — it reflected broader concerns. Traders worried about liquidity gaps, the possibility that stolen tokens could be dumped, and the lack of clarity on whether the tokens can be frozen or clawed back. The incident is a reminder that cross-chain bridges remain a vulnerable layer in crypto, even when the underlying blockchains are secure.
Post-incident communication and recovery efforts are now critical for restoring trust. The team behind Midnight is expected to provide a clear timeline of events and updates on tracing the stolen tokens. Wanchain, meanwhile, will need to patch the signature reuse flaw and likely conduct a security review of its other bridge routes. For now, the affected bridge remains paused. The big open question: can the 515 million NIGHT be recovered, or will the market have to absorb the loss?
