According to reports from AMBCrypto, Hyperbridge has significantly revised the financial impact of its recent Token Gateway exploit, increasing estimated losses from roughly $237,000 to approximately $2.5 million following a comprehensive forensic assessment. The updated figures highlight a substantially larger impact than initially reported, as more activity across multiple chains was accounted for in the revised calculation.
As reported by AMBCrypto, the exploit unfolded in two distinct phases. An initial extraction of around 245 ETH was followed by a larger event where the attacker minted approximately 1 billion bridged DOT tokens. These tokens were then sold into available liquidity across connected EVM networks, including Ethereum, Base, BNB Chain, and Arbitrum. The vulnerability was linked to flaws in Merkle Mountain Range [MMR] proof verification logic, allowing forged cross-chain messages to be accepted.
According to AMBCrypto, Hyperbridge has successfully traced a significant portion of the exploited funds on-chain, with some routed to Binance. The team is now working with Binance's compliance unit and law enforcement agencies to freeze and recover assets. However, the company noted that recovery timelines can extend over several months or longer, depending on coordination and investigation outcomes. If recovery efforts prove insufficient, Hyperbridge plans to compensate affected users by allocating its native BRIDGE tokens.
As reported by AMBCrypto, all bridging activity through the Token Gateway remains paused while the team develops a comprehensive patch and conducts external audits. Operations will only resume once the vulnerability is addressed and additional safeguards are implemented. The team confirmed that the exploit was isolated to the Token Gateway and did not affect other parts of the protocol, including its Intent Gateway product.
According to AMBCrypto, the protocol's native BRIDGE token has reflected the impact of the incident, trending lower following the exploit with recent price action showing a sharp sell-off after a brief spike. Momentum indicators remain subdued, with the Relative Strength Index hovering near oversold territory, suggesting limited buying strength in the short term.
