Qubic has suspended its layer-1 blockchain after an attacker exploited a weakness in wallet seed generation, draining about $1.4 million in cryptocurrency from more than 1,400 accounts.
The project said the stolen funds amounted to 2.94 trillion Qubit (QU). Qubic halted the network at tick 85,371,949, where it remained paused while validators prepared to consider how the affected assets should be handled.
Most funds remain frozen
Qubic said 87.1% of the drained funds had not left its network and were still frozen onchain. The remaining 12.9% was transferred to cryptocurrency exchange MEXC, which froze the receiving account within about an hour, according to the project.
The incident affected wallets whose seeds were generated in certain environments. Qubic identified browser-based wallet creation on an iPhone or iPad, Safari on a Mac up to October 18, 2026, and the Qubic iOS application before July 2025 as vulnerable cases.
A wallet seed is the underlying sequence of information used to generate and recover a cryptocurrency wallet. If it is predictable or insufficiently random, an attacker may be able to reproduce it and gain access to the assets controlled by the wallet.
Qubic said it has corrected the problem in the newest version of its web wallet. A GitHub commit for version 4.26.4 shows that the project replaced JavaScript’s Math.random() function with crypto.getRandomValues(). The latter is designed for cryptographic use, while Math.random() is not suitable for creating wallet secrets.
Recovery plan awaits validator vote
Qubic’s core team is identifying wallets that may have been affected and developing recovery options. The network’s Computors, which act as its validators, are expected to vote on a recovery plan and decide what will happen to the funds that remain frozen.
The project said it would release a complete technical report after a recovery plan is settled. It has not said when normal network operations will resume. Qubic did not immediately respond to Cointelegraph’s request for comment, according to Cointelegraph’s reporting.
The attack follows other incidents linked to weak wallet-seed generation. Coldcard disclosed in July that a firmware bug had weakened seeds in some wallets, while similar vulnerabilities affected the Trust Wallet browser extension and the Libbitcoin Explorer tool in 2023.
Qubic is a fee-free layer-1 blockchain for transactions and smart contracts. It uses Useful Proof of Work, a consensus system that repurposes mining energy for artificial-intelligence training. CoinGecko data cited in the source put Qubic’s market capitalization at about $62.6 million when the report was written.
Qubic market picture
Moneyiar market data at 22:19 on October 19, 2026, puts Qubic (QUBIC) at $0.0000004608, up 4.81% over 24 hours but down 24.98% over seven days. The same data shows Horizen (ZEN) at $5.9984326076, up 3.72% in 24 hours and down 4.11% over seven days; Rain (RAIN) at $0.0088402003, down 3.55% and 14.8%; and Walrus (WAL) at $0.0384082949, down 1.41% over 24 hours but up 8.19% over seven days.
