WEMIX freezes network after 5.23 million WEMIX$ minted

A contract-owner breach on WEMIX3.0 allowed about 5.23 million WEMIX$ tokens to be minted without authorization, prompting a broad suspension of network services. The incident puts the stablecoin's stated 1:1 backing model under scrutiny and leaves the final financial impact unresolved.

WEMIX's whitepaper says WEMIX$ is fully backed by USDC held in a Treasury, with supply matching that reserve. It also limits minting access to the DIOS stability protocol. The team said abnormal transactions began at 09:17 UTC on July 26, after ownership of a related contract was compromised. It has not explained how the breach occurred.

According to the preliminary update, the unauthorized tokens were converted into 30,736 WEMIX and 724,198.27 USDC.e. The USDC.e was bridged to Ethereum and BNB Smart Chain, exchanged for assets including ETH and USDT, and sent to multiple addresses. Some funds later reached centralized exchanges. The token count does not establish a $5.23 million loss, and WEMIX has not disclosed a final estimate.

WEMIX suspended all connected bridges, including Chainlink CCIP and PLAY Bridge, along with several liquidity pools, the WEMIX$ Module, PNIX DEX, game features, and NFT trading. Some exchanges froze linked addresses, but the amounts and any user losses remain unknown.