Arbitrum-based DEX AFX Trade Drained of $24M — Is the L2 Ecosystem at Risk?

What happened

AFX Trade, an Arbitrum-based perpetuals exchange, lost $24.15 million in an exploit targeting its USDC bridge. While Arbitrum's native bridge was not compromised, the incident marks the second such exploit on an Arbitrum…

What we think

The most likely outcome is a contained impact on the Arbitrum ecosystem, with ARB's price remaining relatively stable, reflecting the isolated nature of the AFX Trade exploit from the Layer 2 itself.

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Arbitrum-based DEX AFX Trade Drained of $24M — Is the L2 Ecosystem at Risk?

We explain what happened and what could follow. We do not forecast prices.