x402 Protocol Under Attack: $17.6K USDC Stolen Amid Token Surge, Users Urged to Act Fast

 

GoPlus Reports Suspected x402 Protocol Hack, $17.6K USDC Stolen Amid Platform Surge

In the latest security alert shaking the cryptocurrency community, GoPlus, a prominent blockchain security firm, has reported a suspected hack involving the x402 Protocol, a cross-chain bridge that has recently seen a surge in popularity among crypto users. The breach reportedly impacted more than 200 users and resulted in the theft of approximately $17,693 in USDC, the stablecoin pegged to the U.S. dollar.

The incident comes amid a dramatic 500% spike in the x402 Protocol token’s price within a single day, attracting heightened attention to the platform. While the cryptocurrency community has been bullish on the protocol, the suspected security lapse highlights the ongoing risks associated with rapidly growing blockchain projects.

Details of the x402 Protocol Hack

GoPlus disclosed that the attack exploited excessive authorization mechanisms built into the protocol. According to their investigation, users had been required to grant USDC allowances to the 402bridge smart contract before minting tokens. The contract’s ownership had recently been transferred to a new address, starting with 0x2b8F. The attacker allegedly leveraged the transferUserToken method to move USDC from the wallets of authorized users, ultimately siphoning off a total of $17,693.

The stolen USDC was then converted into Ethereum and transferred to the Arbitrum network via multiple cross-chain transactions. GoPlus urged all participants in the x402 Protocol to promptly revoke their token authorizations to prevent further unauthorized transfers. This incident underscores the vulnerabilities in cross-chain mechanisms where smart contract permissions, if mismanaged, can expose users to significant losses.

Chinese blockchain reporter Wu Blockchain shared GoPlus’s findings on social media, emphasizing that the security breach was enabled by a combination of excessive user authorization and control over the contract by the new owner. While the monetary loss might appear modest compared to high-profile crypto hacks, the incident raises broader concerns about governance and user protection within emerging DeFi and cross-chain platforms.

Token Price Volatility Post-Hack

Despite the breach, x402 Protocol tokens have remained active in trading, though the price experienced a notable decline. After reaching a high of $0.000000000008 earlier in the day, the token fell to $0.000000000003, reflecting market caution following the security report. At the time of publication, the token was trading at $0.000000000003166, maintaining gains of nearly 190% over the previous 24 hours and an astonishing 4,085% over the past two days.

The trading volume has surged as well, rising by 1,440% to reach $1.71 million in a single day. Analysts suggest that traders may be speculating on the long-term potential of the x402 Protocol despite the security incident. Recent network statistics show explosive activity, with over 500,000 transactions executed in a single week, marking a 10,000% increase in monthly transaction volume.

Cross-Chain Bridge Vulnerabilities and Lessons Learned

The x402 Protocol hack is a stark reminder of the risks inherent in cross-chain bridges and decentralized finance (DeFi) platforms. Bridges that enable asset transfers across different blockchain networks often rely on complex smart contracts and require user approvals to operate. While these features increase interoperability and usability, they can also be exploited if permissions are misconfigured or controlled by a single party.

Experts in blockchain security note that the growth of cross-chain protocols must be accompanied by rigorous auditing and robust risk management frameworks. The incident also highlights the importance of user education, as many losses in the crypto space occur due to misunderstood smart contract approvals rather than flaws in the underlying blockchain technology itself.

Community Response and Developer Action

Following the report, community members and traders have engaged in discussions about mitigating future risks. GoPlus recommended immediate action, including revoking permissions to the 402bridge contract and monitoring wallets for unauthorized activity. The x402 Protocol team has yet to issue a detailed public statement, though insiders suggest that a security patch and further contract audits are underway.

This breach also emphasizes the necessity of transparency in blockchain projects. Users are increasingly demanding that developers provide clear instructions on how to protect their assets, particularly in protocols that require token allowances and cross-chain functionality. Security audits and real-time monitoring could become standard requirements as the DeFi ecosystem continues to expand.

Looking Ahead

The x402 Protocol incident, while limited in financial scale, serves as a cautionary tale for investors and DeFi participants. As the cryptocurrency ecosystem matures, the importance of secure, transparent, and well-audited smart contracts cannot be overstated. Traders appear undeterred by the short-term setback, likely due to the platform’s recent performance and perceived long-term potential.

Security analysts recommend that investors remain vigilant, practice good wallet hygiene, and stay informed about ongoing developments in projects they support. For emerging cross-chain protocols like x402, user engagement must be balanced with robust security measures to ensure trust and long-term adoption.

Conclusion

The suspected x402 Protocol hack illustrates the dual-edged nature of rapid growth in decentralized finance. While new platforms offer innovative ways to trade and interact with digital assets, vulnerabilities in smart contract design and authorization protocols can expose users to substantial risks. Going forward, the crypto community will closely watch how x402 Protocol addresses this breach and whether the platform can maintain confidence among its growing user base.

Despite the setback, x402 Protocol tokens remain actively traded, with significant price gains maintained. The incident highlights the importance of security, community awareness, and proactive governance in sustaining the momentum of emerging crypto ecosystems.

Source

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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