AFX Bridge Exploit Drains $24.15M USDC From Arbitrum Bridge
Bablu Singh Nirwan
AFX Bridge Exploit Drains $24.15M in USDC on Arbitrum
An attacker exploited a cross-chain bridge operated by AFX, is derivatives-focused platform whose USDC deposit network operates on Arbitrum, on July 22, 2026.
The AFX bridge exploit drained roughly $24.15 million in USDC. Security firm Blockaid flagged the incident at 21:30 UTC. The team suspended bridge operations right after detection and confirmed the network itself was not affected.
Source: Blockaid official
Key Details of the Exploit
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The exploit targeted AFX's self-operated custody protocol , not the official Arbitrum bridge.
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Roughly 24.15 million USDC was withdrawn from the protocol.
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The attacker then moved the stolen USDC to Ethereum and bought about 12,467 ETH at an average price near $1,937.
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Blockaid is working with the Arbitrum team to trace the stolen funds and contain further movement.
Official Confirmation
It confirmed the incident in an official statement. The company said it detected the issue and immediately suspended protocol operations. Its engineering and security teams are now investigating the root cause with outside blockchain security partners.
The team added that the incident appears isolated to its own custody protocol. The trading infrastructure, mainnet, and Arbitrum network have not been compromised, the company said.
Offchain Labs co-founder Stephen Goldfeder also addressed the incident. He confirmed the hack involved a third-party network and that Arbitrum's native protocol was not touched in any way. His statement lines up with AFX's own account of the @AFX bridge exploit.
AFX's Response
It said its investigation into the exact attack method is still ongoing. The team is working with ecosystem partners and security firms to assess the full impact and recover funds where possible.
The company also committed to full transparency. And it said it will keep sharing verified updates as the investigation moves forward.
Source: X official Response
Market Impact
ARB, Arbitrum's native token, showed a mild pullback as of writing. Below is the live snapshot from CoinMarketCap:
| Metric | Value (24h) |
| Price | $0.08930 |
| 24h Change | -1.33% |
| Market Cap | $590.69M |
| Market Cap 24h Change | -1.33% |
| Volume (24h) | $73.12M (+37.62%) |
| Vol/Mkt Cap (24h) | 12.37% |
| FDV | $893.08M |
| Total Supply | 10B ARB |
| Circulating Supply | 6.61B ARB |
Source: coinmarketcap data
The team has stressed that the exploit does not touch the chain's core infrastructure, which may help limit wider fallout for now.
Conclusion
The protocol marks another reminder of the risks tied to third-party bridges built on top of major networks like Arbitrum.
While AFX and Arbitrum have moved fast to contain the damage, the exact attack vector remains unconfirmed. Readers should watch for further official updates from AFX as the investigation continues.
Disclaimer
This article is for educational and informational purposes only and should not be considered financial or investment advice. Always conduct your own research before making investment decisions.
