Cardano Midnight Network Faces Exploit via Wanchain Bridge, NIGHT Token Drops 28%

Key Insights:

• Cardano news shows Wanchain bridge exploit drained about 515 million NIGHT tokens from the bridge treasury.
• Cardano Midnight said its network was not compromised and blamed the issue on the Wanchain bridge.
• NIGHT token plunged over 30% before trimming losses, while ADA showed signs of a possible short-term rebound.

Cardano news is back in focus after a reported exploit on the Wanchain bridge led to a huge loss of bridged NIGHT tokens. Midnight said its network was not attacked, but the incident sparked heavy selling, sending the NIGHT to its lowest price since launch as traders reacted.

Cardano news took a new turn after reports of a security issue involving the Wanchain bridge that connects Cardano to BNB Chain. The incident affected bridged NIGHT assets and quickly drew attention across the crypto market.

Blockchain security company BlockSec said about 515 million NIGHT tokens were drained from the bridge treasury. Its early review suggested the issue may have come from the way signed messages were handled inside the bridge. According to the firm, that weakness may have allowed the same signature to be used more than once.

Soon after the reports appeared, the Midnight Foundation released a statement. It said the problem was linked to the Wanchain bridge and not to the Cardano Midnight network. The team added that it was following the situation and working with partners to understand exactly what happened.

The foundation also asked users to wait for official updates instead of relying on rumours. It warned community members to stay alert for fake accounts and phishing scams while the investigation continues.

Cardano DRep Dori also commented on the incident and repeated that the issue did not start on the Midnight network. The post said bridge assets always carry extra risk because they depend on another platform. It also pointed to trust-minimized bridge systems such as BitVM as a safer direction for the future.

The statements were meant to make it clear that the reported exploit was connected to the bridge, not the blockchain itself. Even so, the news was enough to shake confidence and trigger a sharp market reaction.

The biggest effect of the incident was seen in the NIGHT price. After news of the exploit spread, the token lost more than 28% before trimming some of those losses. At the time of writing, it traded around the $0.0195 mark.

Earlier in the sell-off, the token dropped to about $0.016, its lowest level since it was launched. Based on current prices, the stolen tokens were valued at about $9 million. Trading activity also increased as daily volume climbed above $166 million, while the market value of the token stood at nearly $324 million.

It is still too early to know if the NIGHT token will recover from this fall. Per the Cardano news, much will depend on what investigators find and whether confidence returns after more details become available. For now, Midnight continues to maintain that its own network was not breached.

While Cardano Midnight dealt with the fallout from the bridge exploit, ADA was showing a different picture. Market analyst MCO Global said Cardano had reached another downside target and was trying to settle. The analyst believes the coin could move toward $0.23 if buyers return and support the current price.

However, this is based on technical analysis by the expert and not financial advice. As the crypto market often showcases higher volatility, market participants must exercise due diligence while placing their bets.

At the same time, the analyst said the wider bearish trend has not ended. A stronger recovery will still need more confirmation before traders can say the worst is over. Notably, that leaves investors watching two stories at once. One is the bridge exploit that affected bridged NIGHT assets. The other is whether ADA can build on its latest move.

For now, Cardano news remains centered on the Wanchain bridge incident. Midnight has continued to say its blockchain was not attacked, but the event has shown once again that problems involving third-party bridges can have a big effect on connected crypto projects.

The post Cardano News: Midnight Network Faces Exploit by Association, NIGHT Price Crashes 28% appeared first on The Coin Republic.