Crypto’s Latest Party Pooper: IoTeX Loses $8M in Glorified Heist

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Who knew merging crypto with AI would make hackers feel so… motivated? IoTeX, the blockchain platform that apparently thought “real-world AI” sounded like a good idea, just lost $8 million after someone stole a private key. Turns out, private keys are just about as private as a diary left on a park bench.

Here’s how the heist went down, why the IoTeX team looks like they’re playing Whac-A-Mole with their reputation, and whether your hard-earned crypto is now safer than a sock in a dryer. Spoiler: It isn’t.

How IoTeX’s $8M Heist Became a Reality

PeckShield, a company that probably charges by the hour to point out obvious mistakes, confirmed the hacker didn’t exploit a bug-they just… had the key. Like walking into a bank vault with a skeleton key and a smirk. Suddenly, the token safe wasn’t so safe, and the hacker started treating it like a buffet for USDC, USDT, IOTX, PAYG, WBTC, and BUSD.

The real pièce de résistance? Creating 111 million CIOTEX tokens out of thin air. Because nothing says “trust us” like printing money like it’s Monopoly night at the crypto casino.

Stolen Funds: A Game of Hot Potato

The hacker, clearly a fan of the word “discreet,” started converting their ill-gotten gains from ETH to Bitcoin using THORChain. If blockchain were a neighborhood, this would be like stealing a car, driving it through three states, and then parking it in a place where the GPS just gives up.

Meanwhile, the IOTX token dropped 7%, which is about as thrilling as watching your favorite cereal lose a spoonful of sugar to a raccoon. Market cap? $47.46 million. Let’s just say it’s not exactly Wall Street’s next big thing.

Iotex’s Response: “We’re Totally On It!”

IoTeX took to X to assure everyone they’re “investigating,” which is crypto-speak for “we’re scrambling and hope you don’t sue us.” They’re working with exchanges and security firms to track the hacker’s trail-like trying to follow a ghost who’s allergic to light.

We’re aware of suspicious activity involving an IoTeX token safe. Our team is working around the clock to assess and contain the situation. Initial estimates indicate the potential loss is significantly lower than circulating rumors…

– IoTeX (@iotex_io) February 21, 2026

Translation: We’re lying to you with a straight face and hope you forget our name by tomorrow. Meanwhile, exchanges are on standby to freeze the hacker’s assets if they ever decide to dip their toes into a centralized platform. Good luck with that.

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2026-02-21 15:47