WEMIX Security Breach Results in $5.2M Stablecoin Minting and 66% TVL Drop

The WEMIX ecosystem suffered a security breach that led to the unauthorized minting of approximately $5.2 million in WEMIX$ tokens and an outflow of about 30,000 WEMIX and 720,000 USDC.e.

The incident occurred on July 26 at around 9:17 UTC when an attacker gained access to administrative privileges on the WEMIX Dollar (WEMIX$) smart contract. This allowed them to mint a significant volume of the stablecoin without proper authorization.

The WEMIX team took swift action to contain the damage, blocking internal and external bridges connected to the WEMIX 3.0 mainnet and temporarily suspending liquidity pool trading. They also withdrew foundation-supplied liquidity from affected DeFi protocols to prevent further losses.

The breach had a significant impact on Wemixfi's total value locked (TVL), which dropped by approximately 66% following the liquidity withdrawal and trading suspension. This reflects both the removal of foundation-provided liquidity and the broader market reaction to the security incident.