According to IoTeX, the incident was linked to a suspected private key leak, prompting the project to launch a compensation portal and reimburse affected users using foundation reserves rather than selling IOTX tokens.
IoTeX announced an update on its recent security incident, stating that the breach was likely caused by a suspected private key leak. The blockchain project launched a compensation portal to reimburse affected users. According to the official announcement, users who lost less than $10,000 will be repaid in stablecoins, covering more than 90% of victims. Losses exceeding $10,000 will be fully compensated in phases using the IoTeX Foundation’s reserves. The project emphasized that reimbursements will not involve selling IOTX tokens, aiming to protect the token market while addressing user losses.