Gravity Bridge halted operations after a $5.4 million hack. Security teams are tracing funds while investigating a suspected key compromise.
A major security incident has hit Gravity Bridge, a decentralized blockchain that connects the Ethereum and Cosmos networks. The protocol reportedly lost approximately $5.4 million worth of digital assets in a hack. This led to the validators stopping bridge operations quickly. In the meantime, security teams began their investigation of the attack and traced the stolen money.
Hackers Drain USDC, ETH, and USDT from Gravity Bridge
According to blockchain security firm PeckShield, the attacker drained several assets from the bridge. About $4.3 million in USDC, 274 wrapped Ether (wETH) worth approximately $553,000, and USDT valued at $434,000 were stolen. The hacker also took 14.164 PAX Gold tokens worth of almost $64,000.
Thanks to the swift action of validators, the bridge is currently halted while investigations continue.
— Gravity Bridge (@gravity_bridge) May 30, 2026
Shortly after the attack, blockchain transactions revealed that the attacker had transferred some of the funds. Some assets were laundered via crypto exchanges and mixing services, PeckShield said. In addition, investigators stated that the attacker still has over 2,100 ETH valued at approximately $4.23 million.
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The exploit was first spotted when strange withdrawals were seen on the bridge. Security researchers began to investigate the incident immediately. As more information came to light, there was growing worry among the crypto community, as Gravity Bridge is a crucial component in bridging assets between various blockchain networks.
Security firm SlowMist says a compromised signing key or contract key could have caused the attack. This would have enabled the attacker to make withdrawals without authorization. The complete cause is still being investigated, however.
The Gravity Bridge team reported the problem and said that they had stopped operations. It was decided to avoid further loss while a review of the situation was made. This means that at the moment, assets cannot be transferred across the bridge.
Security Teams Trace Stolen Assets Across Networks
Meanwhile, blockchain investigators are on the trail of the stolen cryptocurrency. Many of the funds are still traceable as blockchain transactions are public. Security teams are monitoring wallet movements and providing information to exchanges as needed.
The attacker is said to have transferred some of the money via ChangeNOW and Binance. But a significant amount of the stolen assets is still in wallets. This visibility may assist authorities and security companies in monitoring future movements.
Cross-chain bridges are essential infrastructure in the crypto sector. They enable users to transfer assets from one blockchain to another. But these platforms have also been a common target for hackers as they are able to store huge amounts of locked funds.
In recent years, several bridge protocols have been compromised. This has led to a greater emphasis on securing private keys, transaction verification, and security protocols by developers. Despite this, attackers are still looking for vulnerabilities.
Gravity Bridge is currently on hold while the investigation is ongoing. Security experts are trying to figure out how the exploit took place, the team said. In addition, efforts are still underway to trace and possibly recover the stolen assets.
The incident is yet another reminder of the security concerns of decentralized finance platforms. While blockchain technology offers many advantages, protecting critical infrastructure remains essential.
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