Qubic Restores Blockchain After Attack on 1404 Wallets

On October 20, the Qubic team announced the resumption of blockchain operations following an attack affecting 1,404 wallets. Network consensus participants approved a plan to return stolen funds and opened applications for affected users. While the network was down, the affected funds were transferred to a secure escrow account to prevent additional risk.

According to a blockchain observer, on October 19, around 20:00 UTC, the network resumed processing ticks after stopping at block 85,371,949. The first assets have already been returned to owners who confirmed their rights. The project does not disclose the volume of payments and the number of recipients.

Affected users can submit an application through a special platform until May 1, 2027. The application must include two addresses, the compromised and the new one, as well as proof of asset ownership: documents on fund withdrawal from trading platforms, information on over-the-counter transactions, deposit history, and other confirmations. Applications with convincing evidence and no disputes over asset ownership will be processed promptly, while others will undergo additional verification.

The attack occurred on October 17-18. The attacker exploited insufficient randomness in seed phrase generation and stole about 2.94 trillion QU. According to the team's initial assessment, 87.1 percent of the stolen tokens remained within the network, while another 12.9 percent were sent to MEXC, which blocked the corresponding account.

The vulnerability affected seed phrases created in browsers on iPhone and iPad, in Safari on Mac, as well as in older versions of the Qubic app for iOS. Developers fixed the issue in the web wallet version 4.26.4, released on October 19.

On October 20, the Qubic team warned that all wallets created through the web application before version 4.26.4 should be considered potentially unsafe. The absence of suspicious transactions does not guarantee the safety of assets, as the vulnerability affected the seed phrase generation mechanism itself. Users were advised to update the application, create a new wallet, and transfer their funds to it. Qubic representatives also warned about scammers offering help with token recovery.

Recall that in July 2025, Qubic announced plans to capture 51 percent of Monero's hashrate. Later, an expert described this attack as a PR campaign that did not cause significant damage to the network.