The Qubic blockchain was temporarily halted following a security breach that affected 1,404 user wallets. An attacker exploited a vulnerability in the seed phrase generation mechanism, allowing unauthorized access to funds. The incident occurred between 23:42 UTC on October 17 and 01:26 UTC on October 18, lasting approximately 104 minutes.
The total loss is estimated at 2.94 trillion QU, valued at approximately $1.3 million. Developers have released version 4.26.4 to address the flaw in the generation process. Network operators, known as Computors, stopped the blockchain at tick 85,371,949 to prevent further movement of the stolen assets.
According to the project team, 87.1% of the stolen funds, or 2.56 trillion QU, remain within the network. The remaining 12.9%, totaling 379 billion QU, were transferred to the MEXC exchange, which subsequently froze the receiving account. Other exchanges, including Bitget, have suspended deposits and withdrawals of the token.
The project team is currently identifying all affected wallets and preparing options for a network vote to determine the next steps. A quorum of network operators will make the final decision regarding the restoration of funds. The timeline for restarting the blockchain remains unknown, with a detailed technical report expected after the recovery process.
