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Update on the Base Bridge Incident What Happened Earlier today, the Constellation Bridge team identified that the hot wallets used to facilitate bridging operations had been drained. An unauthorized actor transferred all funds from these wallets on both the DAG and Base networks. On the DAG side, attempts were made to move the funds to KuCoin, but the affected addresses were quickly identified and blocked. On the Base network, the stolen funds were moved to decentralized exchanges (DEXs) and swapped. Shortly afterward, unauthorized access was detected on the ERC-20 contracts for DAG and DOR on Base. The attacker was able to mint additional tokens and sell them on DEXs, which caused a temporary price crash for those tokens. Investigation Because the attacker gained access to two unrelated sets of keys (the bridge hot wallet keys and ERC-20 contract owner keys), it became clear that this was not an attack on the bridge infrastructure itself - since the ERC-20 owner keys are never stored within that system. Our investigation identified a single team member who had access to both sets of keys. We believe this individual inadvertently ran a web-based codebase on their development machine that contained malicious code, which scanned the local file system and extracted stored keys. The malicious code and attack vector have been identified, and the investigation into how this occurred is ongoing. Next Steps and Solutions This incident requires significant corrective action. The following measures are being taken: - Contract replacement: We will retire the existing DAG and DOR contracts on Base, deploy new ones, and airdrop equivalent tokens to all holders based on a snapshot taken immediately before the attack. - Key and contract rotation: As a precaution, we will rotate ownership and permissions on other affected or potentially exposed contracts, including veLTX. - Bridge restoration: Once the new contracts are deployed and enhanced operational safeguards are implemented, bridge funds will be replenished, and the bridge will be reopened. Final Note We take this incident extremely seriously. However, it’s important to emphasize that no user funds were ever at risk. The bridge was intentionally designed with limited funds in its hot wallets to contain the impact of such events. Thanks to these safeguards and a swift response from the team, the breach was contained, and damage was minimized. Our priority now is to complete verification, restore affected systems, and reinforce our security posture to support a resilient future for the community. We deeply appreciate the community’s patience, trust, and understanding as we finalize remediation efforts. Details on the exact timing of the corrective actions will be shared soon. Thank you for your continued support. Onwards.