Chiliz CEO: Security Incident Results in Loss of Approximately 1 ETH, User Funds Unaffected

Chiliz CEO Alexandre Dreyfus released a security update confirming that user funds and wallets were unaffected, with the total loss from the incident amounting to approximately 1 ETH, equivalent to about $2,000. The loss originated from wallets used to pay cross-chain bridge fees. On October 26, the team discovered that attackers accessed part of the internal infrastructure through an outdated legacy partner website. The company is conducting ongoing investigations with an independent forensic agency, confirming that the multi-signature was not breached at the code and key levels, and that the core smart contracts and treasury code were not tampered with. The digital asset treasury, as well as the minting of CHZ and fan tokens, remained unaffected. Approximately 1 ETH was withdrawn from seven hot wallets used for paying cross-chain bridge fees, with related transactions available for review on Etherscan. Dreyfus stated that the attackers had accessed a cryptocurrency user database, but there is no evidence that data was exported or that passwords or KYC documents were exposed. The company has notified regulatory authorities in accordance with GDPR and the Malta Financial Services Authority and MiCA requirements, rotated all keys and credentials, suspended the cross-chain bridge, and revoked all relays, while transferring the cross-chain bridge wallet to institutional custody. The governance portal has been temporarily suspended as a precaution, reminding users not to share passkeys or recovery toolkits and to only use official channels.

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