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Hyperbridge has raised its loss estimate from the April 13 Token Gateway exploit to about $2.5 million, after an expanded review found deeper damage than an earlier assessment based on initial on-chain activity.
In its earlier reporting, Hyperbridge estimated losses at nearly $237,000. The updated figure reflects a broader reconciliation across multiple networks and a two-phase attack that went beyond the initial visible sell-off of bridged DOT on Ethereum.
Hyperbridge said it revised the figure after reconciling transactions across Ethereum, Base, BNB Chain, and Arbitrum. The team explained that it reviewed attacker activity in two phases and included losses from incentive pools, bringing realized losses to roughly $2.5 million.
Polkadot said the incident affected only DOT bridged through Hyperbridge to Ethereum. It confirmed that native DOT on Polkadot was not impacted and that the broader Polkadot ecosystem did not face direct impact.
Hyperbridge said the attacker first extracted about 245 ETH from Token Gateway. In the second phase, the attacker minted about 1 billion bridged DOT tokens without authorization and sold them into available decentralized exchange liquidity.
Hyperbridge said the resulting sales pressure increased losses across the chains it supports. The project confirmed that the exploit centered on its Token Gateway component.
Security researchers traced the flaw to Merkle Mountain Range proof verification logic. The vulnerability affected Hyperbridge’s HandlerV1 path and enabled forged cross-chain messages.
Hyperbridge said the attacker used this to gain control over admin functions tied to the bridged DOT contract. The attacker then minted fake bridged DOT tokens on Ethereum and dumped them into limited liquidity pools, expanding losses beyond the initial ETH extraction.
Hyperbridge stated that the damage remained isolated to Token Gateway. It said bridged token contracts on Ethereum, Base, BNB Chain, and Arbitrum were affected, while Intent Gateway and related products were not impacted.
Hyperbridge said it traced a large portion of the exploited funds to Binance. The company said it is working with Binance’s compliance team and law enforcement to freeze and recover assets.
Hyperbridge added that it plans to allocate BRIDGE tokens if recovery efforts fail. All Token Gateway bridging remains paused while the team finalizes a patch.
The company said it will complete an independent audit and add safeguards before resuming operations, and it confirmed it will publish the audit report before restoring full functionality.
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