WEMIX Dollar Stablecoin Hit by Hackers in Security Breach
Korea's first game-company stablecoin, WEMIX Dollar (WEMIX$), has been hit by a security breach. The incident occurred on February 27th at around 6:17 p.m., when an attacker seized the administrative rights to the WEMIX Dollar-related contract and minted approximately $5.22 million worth of tokens without authorization.
The attacker then exchanged the illicitly minted WEMIX Dollar for 30,736 WEMIX and 724,198 USDC.e on a decentralized exchange. The stolen funds were eventually moved to Ethereum and BNB Chain through a bridge, converted into assets like ETH and USDT, and dispersed to multiple wallets.
The estimated scale of the damage is around $720,000. Wemade, the issuer of WEMIX Dollar, has halted the operation of the relevant bridge and module, recovered all liquidity from its liquidity pools, and requested cryptocurrency exchanges and stablecoin issuers to freeze the attacker's wallets and related assets.
The incident highlights significant security risks associated with privately issued stablecoins. Analysts note that an attacker who secures issuance rights can mint tokens in large quantities regardless of actual reserve assets, raising concerns about not only the stability of reserve assets but also smart contracts managing issuance rights and internal control systems.