AFX Trade Loses $24.15 Million Due to Compromised Validator Signatures
AFX Trade experienced a significant security incident resulting in a loss of $24.15 million. The breach involved compromised validator signatures that bypassed security measures on a custody bridge contract.
On July 27, 2026, AFX Trade reported a loss of $24.15 million from its USDC custody bridge contract on Arbitrum. The incident was triggered by five compromised validator signatures that cleared the two-thirds threshold necessary for security, allowing unauthorized access to the funds.
The stolen funds were moved out through public rails, which are typically used for legitimate transactions. This incident highlights vulnerabilities in validator systems and the potential risks associated with custody bridges in the crypto space.