Qubic Blockchain Relaunches Network and Begins Compensation After $1.4M Token Theft
Qubic, a layer-1 blockchain, has rebooted its network and commenced recovery efforts after a security flaw in wallet seed phrases enabled a hacker to steal approximately $1.4 million worth of QU tokens from 1,404 accounts, as stated in the latest project update.
According to Qubic's blockchain explorer, the network resumed transaction processing at 8:00 PM on October 19, continuing from tick 85,371,949 where it had been halted the previous Sunday.
The project's network validators, known as Computors, have approved the recovery plan, and Qubic has launched an official platform where affected wallet owners can submit compensation claims.
Users impacted by the breach can verify their wallet addresses and file claims via Qubic’s claim platform. The deadline to submit claims is set for May 1, 2027, according to the project’s information.
The network was shut down on Sunday to prevent the further transfer of stolen funds after attackers exploited predictable seed phrases generated by vulnerable wallet software.
This vulnerability affected seed phrases created using Qubic’s web wallet on certain Apple devices and browsers, where an insecure random number generator could produce predictable seeds. Qubic announced on Sunday that the seed generation flaw had been fixed in the latest version of its web wallet.
Qubic issued a warning on Tuesday stating that any wallet created via the Qubic web wallet before version 4.26.4 (released October 19) should be considered insecure, regardless of whether funds were compromised.
The team advised users to upgrade to web wallet version 4.26.4 or higher, then create a new wallet. They recommend moving funds to the new wallet as soon as possible and never using the old wallet again.
Qubic's swift network relaunch and clear compensation procedure highlight its commitment to security and user protection in the wake of a significant breach.
Why it matters
Qubic's prompt action to restore its network and offer a transparent reimbursement process is crucial to rebuilding trust and safeguarding user assets after a notable security incident.
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