Another massive crypto heist hits Arbitrum, draining AFX Trade of $24 million in USDC—not due to a flawed smart contract, but because five off-chain validator “hot keys” were compromised, allowing an attacker to fake approvals and swap the funds to Ethereum. This isn’t the first time off-chain keys have been the weak link, and it’s part of a troubling trend for Arbitrum-based protocols this quarter. The network itself is secure, but the incident underscores how critical third-party security is—even when the code is flawless.

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