Wanchain Bridge Exploit Drains NIGHT Reserves, Token Hits Record Low
Wanchain Bridge Exploit Drains 515 Million NIGHT – Token Falls to Record Low and Bridge Suspended
Key Takeaways
- An attacker drained about 515 million NIGHT tokens from Wanchain’s Cardano bridge, representing roughly 97% of its reserves.
- Midnight (NIGHT) fell to an all-time low of $0.01524 following the incident.
- Wanchain suspended its Cardano ↔ BNB Chain bridge while investigating the breach.
- The Midnight Foundation stated that its protocol and core infrastructure were not affected.
Attacker Empties Cardano-Side Lock Address Within Minutes
An exploit targeting Wanchain’s Cardano bridge led to the removal of approximately 515 million NIGHT tokens, according to on-chain analysis cited in the source material. The drained amount represented about 97% of the bridge’s NIGHT reserves.
The attack occurred between 14:46 and 14:55 UTC. During that time, the attacker emptied Wanchain’s Cardano-side lock address. This address serves as the custody backing for Wanchain-wrapped NIGHT on BNB Chain. By targeting the lock address, the attacker effectively removed the collateral that supported the wrapped version of the token on the connected chain.
On-chain data referenced in the report indicates that only NIGHT tokens were withdrawn from the contract. Other bridged assets remained untouched. Before the incident, the bridge reportedly held around 527 million NIGHT. After the drain, reserves fell to roughly 12 million tokens.
An analyst cited in the report described the event as a bridge-layer incident. According to that assessment, the overall token supply of NIGHT did not change. However, the wrapped NIGHT circulating on BNB Chain is now largely unbacked due to the missing reserves.
Wanchain Suspends Bridge Operations and Issues Security Notice
Following the breach, Wanchain announced that it had suspended its Cardano ↔ BNB Chain bridge. The suspension is intended to allow for investigation and security review.
The company issued a public security notice referencing the affected bridge. At the time of reporting, no additional technical details about the exploit mechanism were disclosed in the source material.
For users who rely on cross-chain transfers, a bridge suspension can temporarily halt movement of assets between networks. In this case, the Cardano and BNB Chain connection involving NIGHT has been paused while Wanchain examines the incident.
Large-Scale Token Sales Push NIGHT to Record Low
After draining the tokens, the attacker reportedly routed funds through newly created wallets. A significant portion of the stolen assets was then sold on Cardano-based exchanges.
Approximately 290 million NIGHT tokens were sent to decentralized exchanges. The resulting sell pressure had an immediate impact on the market price.
NIGHT fell to a record low of $0.01524 following the incident. At the time referenced in the report, the token was trading around $0.019, down about 27% on the day. The sharp decline reflects the scale of the token sales and the market reaction to the loss of bridge reserves.
For market participants, such rapid movements highlight how liquidity events tied to infrastructure breaches can translate directly into price volatility. In this case, the concentration of token sales within a short timeframe amplified downward pressure.
Midnight Foundation Distances Network From Bridge Incident
The Midnight Foundation addressed the situation by clarifying that its core network operations were not affected by the exploit.
According to the statement cited in the source material, Midnight’s protocol, validator network, consensus mechanism, and core infrastructure continue to operate normally. The foundation emphasized that the breach occurred at the bridge layer rather than within the underlying Midnight network itself.
This distinction is relevant for users who interact with the base protocol separately from cross-chain bridging services. While the wrapped version of NIGHT on BNB Chain is now largely unbacked due to the drained reserves, the Midnight Foundation maintains that its primary systems remain secure.
Incident Adds to Ongoing Attacks on Crypto Infrastructure
The bridge exploit took place shortly after another infrastructure incident. According to the source material, Allbridge Core recently lost $1.65 million in a separate attack.
These events underline continued risks facing cross-chain infrastructure and token bridges. Bridges typically hold locked assets that serve as collateral for wrapped tokens on other networks. When such custody contracts are compromised, the impact can extend beyond the immediate platform to secondary markets and liquidity venues.
In the Wanchain case, the concentration of NIGHT reserves within a single lock address meant that the attacker’s actions directly affected the backing of wrapped tokens and contributed to immediate market disruption.
Our Assessment
The Wanchain bridge exploit resulted in the removal of roughly 515 million NIGHT tokens, equivalent to about 97% of the bridge’s reserves, and led to a record low price of $0.01524 for the token. Wanchain suspended the affected Cardano ↔ BNB Chain bridge to investigate the breach, while the Midnight Foundation stated that its core network infrastructure remains operational and unaffected. The incident follows another recent attack on crypto infrastructure and demonstrates the direct market impact that bridge-level breaches can have on token liquidity and pricing.
