Qubic Halts Blockchain After $1.4 Million Hack Drains Over 1,400 Wallets

Qubic suspended its blockchain operations after an attacker exploited weak wallet recovery seeds to steal approximately $1.4 million in cryptocurrency. The security breach affected 1,404 wallets and resulted in the theft of nearly 2.94 trillion Qubic (QU) tokens.

The network halted transactions on October 18, 2026, to prevent further movement of stolen assets. Qubic confirmed that 87.1% of the stolen funds remain frozen on its blockchain, while cryptocurrency exchange MEXC secured the remaining 12.9%.

Weak Wallet Seeds Expose User Funds

Qubic identified insufficient randomness in wallet seed generation as the primary cause of the security incident. The vulnerability allowed attackers to predict certain wallet credentials and gain unauthorized access to user funds.

According to the project’s investigation, the issue affected wallets created through specific Apple devices and applications.

Affected wallets included those generated through iPhone and iPad browsers before October 18, 2026. Safari users on Mac computers faced similar exposure, while older versions of Qubic’s iOS application also contained the vulnerability.

Qubic emphasized that the weakness originated in wallet seed generation rather than the blockchain’s underlying protocol.

The development team addressed the issue in wallet software version 4.26.4. The update replaced an insecure random-number generation method with a cryptographically secure alternative.

MEXC Freezes Remaining Stolen Cryptocurrency

Following the attack, Qubic coordinated an emergency network shutdown at tick 85,371,949. The suspension prevented further transactions and restricted the attacker’s ability to transfer stolen assets.

Approximately 2.56 trillion QU tokens remain frozen within the Qubic network. Meanwhile, attackers transferred roughly 379 billion QU tokens to MEXC before the exchange froze the receiving account.

MEXC reportedly restricted the account within approximately one hour, helping prevent further movement of the stolen cryptocurrency.

The coordinated response has contained the reported stolen funds, although their eventual recovery remains uncertain.

Validator Vote Will Determine Recovery Plan

Qubic’s network validators, known as Computors, will determine the next steps through a governance vote. The development team is reviewing affected wallets and preparing potential recovery measures for consideration.

However, Qubic has not announced a confirmed timeline for restoring normal blockchain operations. The project also plans to release a comprehensive technical report after finalizing its recovery strategy.

The incident highlights the security risks associated with predictable cryptocurrency wallet seeds. Even when blockchain infrastructure remains intact, weaknesses in wallet software can expose investors to substantial financial losses.