July 20, 2026 • 10 mins
A developing Wanchain bridge incident appears to have moved 515 million bridged NIGHT tokens into the Cardano ecosystem, with rapid selling across Cardano DEXs and a sharp fall in the NIGHT price.
Peter walks through the early on-chain analysis, the Midnight Foundation's warning, why this appears localised to bridge infrastructure rather than Midnight or Cardano itself, and why bridge risk remains one of crypto's biggest attack surfaces.
Chapters:
0:00 Wanchain Bridge Anomaly
1:13 NIGHT Price Drop
1:56 Midnight's Official Warning
3:02 Who Is Affected
3:33 515M NIGHT Movement
4:40 On-Chain Flow
5:42 DEX Selling And Exits
6:13 Liqwid Borrowing Move
7:02 Monitoring The Fallout
8:18 What Is Still Unknown
8:48 Developing Story Wrap Up
What you'll learn:
- The incident appears to involve the Wanchain Cardano-to-BNB bridge and bridged NIGHT, not the Midnight network itself.
- Early analysis points to 515 million NIGHT tokens moving from a two-year-old contract, representing about 2% of supply.
- One wallet reportedly sold hundreds of millions of NIGHT across Cardano DEXs, while another wallet remained active with a large balance.
- Some DEX and bridge operators responded by pausing features or limiting exit paths while the situation developed.
- Peter warns viewers to rely on official updates, remain alert to phishing or impersonation scams, and avoid treating the price drop as a simple dip-buying opportunity.
- The episode reinforces why bridge infrastructure is a high-risk part of crypto and why formal methods and peer review matter.
Links & References:
Wanchain vulnerability affecting NIGHT:
- https://link.learncardano.io/AId82A
Official Statement from Midnight Foundation:
- https://link.learncardano.io/IBeKLO
Initial analysis from CWPaul:
- https://link.learncardano.io/CSpEn3
Watch onchain activity:
- https://link.learncardano.io/COufi4
- https://link.learncardano.io/SQQBZM
Analysis from UTXOMaestro:
- https://link.learncardano.io/ACOFNE
Watch for Updates from Wanchain:
- https://link.learncardano.io/v1Qq9z
Website: https://link.learncardano.io/bQ68Rc
X/Twitter: https://link.learncardano.io/3a1Qtv
Disclaimer: This content is for educational purposes only. Nothing constitutes financial advice.
DISCLAIMER: This content is for informational and educational purposes only and is not financial, investment, or legal advice. I am not affiliated with, nor compensated by, the project discussed—no tokens, payments, or incentives received. I do not hold a stake in the project, including private or future allocations. All views are my own, based on public information. Always do your own research and consult a licensed advisor before investing. Crypto investments carry high risk, and past performance is no guarantee of future results. I am not responsible for any decisions you make based on this content.
🔗 https://www.youtube.com/watch?v=Fq8FhvxET2k
Subscribe to the audio podcast:
🔗 https://bit.ly/learncardano-spotify
🔗 https://apple.co/3jEPM8C
🔗 https://learncardano.io/
Follow on Social:
🔗 https://x.com/learncardano
🔗 https://facebook.com/learncardano
Peter walks through the early on-chain analysis, the Midnight Foundation's warning, why this appears localised to bridge infrastructure rather than Midnight or Cardano itself, and why bridge risk remains one of crypto's biggest attack surfaces.
Chapters:
0:00 Wanchain Bridge Anomaly
1:13 NIGHT Price Drop
1:56 Midnight's Official Warning
3:02 Who Is Affected
3:33 515M NIGHT Movement
4:40 On-Chain Flow
5:42 DEX Selling And Exits
6:13 Liqwid Borrowing Move
7:02 Monitoring The Fallout
8:18 What Is Still Unknown
8:48 Developing Story Wrap Up
What you'll learn:
- The incident appears to involve the Wanchain Cardano-to-BNB bridge and bridged NIGHT, not the Midnight network itself.
- Early analysis points to 515 million NIGHT tokens moving from a two-year-old contract, representing about 2% of supply.
- One wallet reportedly sold hundreds of millions of NIGHT across Cardano DEXs, while another wallet remained active with a large balance.
- Some DEX and bridge operators responded by pausing features or limiting exit paths while the situation developed.
- Peter warns viewers to rely on official updates, remain alert to phishing or impersonation scams, and avoid treating the price drop as a simple dip-buying opportunity.
- The episode reinforces why bridge infrastructure is a high-risk part of crypto and why formal methods and peer review matter.
Links & References:
Wanchain vulnerability affecting NIGHT:
- https://link.learncardano.io/AId82A
Official Statement from Midnight Foundation:
- https://link.learncardano.io/IBeKLO
Initial analysis from CWPaul:
- https://link.learncardano.io/CSpEn3
Watch onchain activity:
- https://link.learncardano.io/COufi4
- https://link.learncardano.io/SQQBZM
Analysis from UTXOMaestro:
- https://link.learncardano.io/ACOFNE
Watch for Updates from Wanchain:
- https://link.learncardano.io/v1Qq9z
Website: https://link.learncardano.io/bQ68Rc
X/Twitter: https://link.learncardano.io/3a1Qtv
Disclaimer: This content is for educational purposes only. Nothing constitutes financial advice.
DISCLAIMER: This content is for informational and educational purposes only and is not financial, investment, or legal advice. I am not affiliated with, nor compensated by, the project discussed—no tokens, payments, or incentives received. I do not hold a stake in the project, including private or future allocations. All views are my own, based on public information. Always do your own research and consult a licensed advisor before investing. Crypto investments carry high risk, and past performance is no guarantee of future results. I am not responsible for any decisions you make based on this content.
🔗 https://www.youtube.com/watch?v=Fq8FhvxET2k
Subscribe to the audio podcast:
🔗 https://bit.ly/learncardano-spotify
🔗 https://apple.co/3jEPM8C
🔗 https://learncardano.io/
Follow on Social:
🔗 https://x.com/learncardano
🔗 https://facebook.com/learncardano
Listen
Watch
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
And we noticed an anomaly from the financed smart chain
side to the cardinal side where it associated with finance,
and the wand chain bridge was being rapidly dumped as
quickly as possible on the DEXes of Cardana. So after
a brief investigation, it became clear that it looked like
(00:22):
the wand chain bridge had become compromised. Midnight and the
smart contract for the Midnight token on the Cardano network
are operating just fine, running twenty four to seven, no
incidents or issues. Glacier drop is continuing, and none of
Midnight's infrastructure has been hacked, and nothing on the cardinal
(00:45):
side related to Midnight has been hacked. It appears that
this is completely localized to win Chain's infrastructure. This requires
more vigilance. Now, from Cardino's standpoint, we predicted that these
things were going to happen. Formal methods, peer review these things.
They're not buzzwords. They considerably reduce the set of attack
(01:07):
vectors that are possible in an ecosystem. Bridges are the
most vulnerable of all of these attacks in the cryptocurrency space.
Speaker 2 (01:15):
Guys, We've got some absolutely crazy news at the moment,
and I woke up to this headline here, and this
is the Night token dropping thirty up to fifty percent
in twenty four hours, not even twenty four hours, about
twelve hour period. It looks like there had been an
exploit on a smart contract that was attached to one
chain and from there, five hundred and fifteen million Night
(01:39):
tokens had been moved to the Kadana ecosystem and this
particular attacker exploiter is liquidating all those assets at the moment,
and it's still ongoing at the moment, so we really
need to make sure we follow the updates here from
the Midnight Foundation to find out what's going on now.
It's very important to note that this isn't a direct
(01:59):
exploit it on the Kadano ecosystem or on the Midnight
network itself, so it doesn't appear to be an exploit
from any of the smart contracts there, and it may
very well be on the one chain side itself, which
is really really concerning. But we'll get more information about
that as various teams investigate what's going on and action
(02:23):
is being taken. So this is the announcement from the
Midnight Foundation. We are aware of reports concerning and incident
involving the one chain Kadano to B and B bridge
affecting Bridge Night based on information currently available, appears to
relate to crosschain bridge operations and not the Midnight network itself.
We are actively monitoring the situation and working with relevant
(02:45):
partners to establish the facts. We encourage the community to
rye on only on official updates and remain vigilant to
phishing attempts and impersonation scams while investigations are ongoing. So
the good thing here doesn't look like it is attacking
people's wallets, So retail isn't being affected here, but it's
affecting the smart contract that is holding up the BnB bridge.
(03:10):
So if I'm sure if we look at the bridge
assets over on BnB as well, that that particular side
of things would be drastically affected. So any of those
wrap tokens over there, they're pretty much worthless at the moment.
But let's have a look at what's going on. So
this is what Paul put out. We noticed the tax
(03:32):
starting at in UTC time at two forty six pm UTC,
a two year old contract with five hundred and fifty
million night two percent of the supply had been withdrawn
and moved over to the Kadana ecosystem. Other tokens within
this contract minth x, xer or zero and WMT were
(03:54):
left untouched. And since then the wall one has sold
over two hundred and eighty eight million across dex is,
pushing the price down fifty percent. Another wallet with two
hundred million is still active and barely has sold anything yet.
Speaker 3 (04:09):
These are the wallet a dresses.
Speaker 2 (04:10):
I'll put the links down below for you guys, but
you can watch the activity and what's happening on fetch itself.
You can see the price of Night moving. It's a yeah.
You can see that massive drop there, and people are
actually buying into the night tokens now trying to buy
that dip. But I do have to warn you guys,
there is still more more of the potential of Night
(04:33):
being sold off, so please be aware of that now.
This here is an early analysis of what is actually
happening at the moment, and I thought this was pretty
good to look into here. This is from UTXO Maestro.
It pulls up put together this diagram here that shows
where all the night tokens is moving at the moment,
which is interesting. So we've got that five point fifteen
(04:55):
million from the one chain side of things moving over
to an operation wallets within the Kadana ecosystem. So this
is the OPS wallet that moved into it then split
off to the secondary wallet here, so some of that
five hundred and fifteen went to this wallet here, which
had two hundred million night tokens. Wallet one continued to
sell off as much of its night tokens as possible.
(05:18):
We got eighty seven million of NIGHT that went to
USDCX and they're trying to exit out of the ecosystem there.
But from what I've heard and what I've read, it
looked like the usdc X bridge had been closed down too,
so that might be a good thing to stop that
exit ramp. We also have the various DEXes out there
(05:40):
seeing the activity go up. We're seeing night being sold
off for eight A at the moment, and we're also
seeing that being sent out to various centralized exchanges. So
we've got thirty nine deposits to centralize exchange wallets. It
looks like five K went to binance as well, and
they're trying to sell out at that point there, and
(06:03):
we'll see what happens with that. But the interesting thing
here is what is happening with wallet two. And this
is why I said, this is definitely someone within the
Kadina ecosystem because they know what's going on here and
how things work. So wallet two was not just dumping
it put sixty eight million night tokens into liquid. Liquid
finance is borrowing a lending protocol on Kadano, so they
(06:25):
use that night tokens to borrow an extra four point
three six million eight against it, and then sent that
four point three six million eight to back off to
wallet one, where it continued to find ways to exit
out the ecosystem. So that's that's crazy. That's insane. Nice
to see that sixty eight million night tookens being locked
(06:46):
into liquid finance, but that's not going to be repaid.
Speaker 3 (06:49):
That's going to be defaulted on. You can follow all.
Speaker 2 (06:51):
The activity here or the links to the Kadano scan
address on chain address activity A put in the link
scin blow for you guys.
Speaker 3 (07:01):
Crazy stuff, guys, But.
Speaker 2 (07:02):
Like I said, we need to monitor and watch what's
going on here, so make sure you follow in the
Midnight Foundation for updates and accurate information. Various DEXes are
encouraging that as well, and where it's also good to
see that dex is like mint Swap are pausing some
of their features, such as the zap in feature or
the night Ada pools and the night USDC pools that
(07:26):
might make it a little bit harder for the attacker
to exit out of these particular pools and liquidis whatnot.
But we're still seeing dex aggregators pass through and sell
the assets, so we're going to see a lot more
activity guys. And we can see here this is tracking
(07:48):
one of the attacker's wallets here, and they're constantly selling
a lot of the assets through here in three million batches,
so every ten or so minutes they'll sell three million
nine tokens for around two hundred and sixty thousand and eight.
You can see some lots of foil transactions here that
didn't quite make it, maybe slippage or whatever it is.
(08:10):
But if you are buying night tokens, be aware of
what's actually happening here. There's still more activity going on.
We haven't heard from the one Chain team yet. We
haven't seen an official announcement that there has been exploit.
All of this hasn't been confirmed yet. We don't know
exactly what's going on. We don't know if it is
(08:30):
the one chain side of things, or someone gain access
to the wallet and is simply just exiting the ecosystem
and selling all the assets. So we don't know exactly
what's going on here, but it doesn't look good overall.
Speaker 3 (08:46):
So that's all I know at the moment. Guys.
Speaker 2 (08:48):
It's still a developing story.
Speaker 3 (08:50):
We will hear more.
Speaker 2 (08:51):
I'll keep you guys up to date with what's happening here,
but make sure you do follow the Midnight Foundation. It's
good to know that it isn't specifically a Kadana vulnerabile
or a Midnight vulnerability may entirely rest on the one
chain side of things, which is really unfortunate because one
chain's been around for a very long time with a
lot of good uptime uninterrupted for eight years with no
(09:14):
exploits supporting forty eight chains. They've supported the Caadana ecosystem
for a long time, and I really hope this isn't
the case. But we'll find out more as time progresses
and various teams work out what's exactly is going on.
Speaker 3 (09:27):
Not good guys.
Speaker 2 (09:29):
On the upside though, on chaining activities up DEXes are
reaping rewards and guards to fees, but you know, it's
definitely not the way.
Speaker 3 (09:40):
You want to see things.
Speaker 2 (09:41):
Anyway, Guys, try it and stay positive out there. I
know the crypto space is kind of wild at the moment. Anyway, Guys,
if you learn something from this video, make sure you hit.
Speaker 3 (09:49):
That thumbs up. But subscribe notfacash bell.
Speaker 2 (09:52):
If you want to be kept up to date with everything,
make sure you hit the subscribe button.
Speaker 3 (09:56):
Oh god, I've got YouTube memberships down below.
Speaker 2 (09:59):
I got to buy me coffee links great ways support
the channel and like the wise guys, try and stay positive.
Speaker 3 (10:04):
I'll see you in the next video.
And we noticed an anomaly from the financed smart chain
side to the cardinal side where it associated with finance,
and the wand chain bridge was being rapidly dumped as
quickly as possible on the DEXes of Cardana. So after
a brief investigation, it became clear that it looked like
(00:22):
the wand chain bridge had become compromised. Midnight and the
smart contract for the Midnight token on the Cardano network
are operating just fine, running twenty four to seven, no
incidents or issues. Glacier drop is continuing, and none of
Midnight's infrastructure has been hacked, and nothing on the cardinal
(00:45):
side related to Midnight has been hacked. It appears that
this is completely localized to win Chain's infrastructure. This requires
more vigilance. Now, from Cardino's standpoint, we predicted that these
things were going to happen. Formal methods, peer review these things.
They're not buzzwords. They considerably reduce the set of attack
(01:07):
vectors that are possible in an ecosystem. Bridges are the
most vulnerable of all of these attacks in the cryptocurrency space.
Speaker 2 (01:15):
Guys, We've got some absolutely crazy news at the moment,
and I woke up to this headline here, and this
is the Night token dropping thirty up to fifty percent
in twenty four hours, not even twenty four hours, about
twelve hour period. It looks like there had been an
exploit on a smart contract that was attached to one
chain and from there, five hundred and fifteen million Night
(01:39):
tokens had been moved to the Kadana ecosystem and this
particular attacker exploiter is liquidating all those assets at the moment,
and it's still ongoing at the moment, so we really
need to make sure we follow the updates here from
the Midnight Foundation to find out what's going on now.
It's very important to note that this isn't a direct
(01:59):
exploit it on the Kadano ecosystem or on the Midnight
network itself, so it doesn't appear to be an exploit
from any of the smart contracts there, and it may
very well be on the one chain side itself, which
is really really concerning. But we'll get more information about
that as various teams investigate what's going on and action
(02:23):
is being taken. So this is the announcement from the
Midnight Foundation. We are aware of reports concerning and incident
involving the one chain Kadano to B and B bridge
affecting Bridge Night based on information currently available, appears to
relate to crosschain bridge operations and not the Midnight network itself.
We are actively monitoring the situation and working with relevant
(02:45):
partners to establish the facts. We encourage the community to
rye on only on official updates and remain vigilant to
phishing attempts and impersonation scams while investigations are ongoing. So
the good thing here doesn't look like it is attacking
people's wallets, So retail isn't being affected here, but it's
affecting the smart contract that is holding up the BnB bridge.
(03:10):
So if I'm sure if we look at the bridge
assets over on BnB as well, that that particular side
of things would be drastically affected. So any of those
wrap tokens over there, they're pretty much worthless at the moment.
But let's have a look at what's going on. So
this is what Paul put out. We noticed the tax
(03:32):
starting at in UTC time at two forty six pm UTC,
a two year old contract with five hundred and fifty
million night two percent of the supply had been withdrawn
and moved over to the Kadana ecosystem. Other tokens within
this contract minth x, xer or zero and WMT were
(03:54):
left untouched. And since then the wall one has sold
over two hundred and eighty eight million across dex is,
pushing the price down fifty percent. Another wallet with two
hundred million is still active and barely has sold anything yet.
Speaker 3 (04:09):
These are the wallet a dresses.
Speaker 2 (04:10):
I'll put the links down below for you guys, but
you can watch the activity and what's happening on fetch itself.
You can see the price of Night moving. It's a yeah.
You can see that massive drop there, and people are
actually buying into the night tokens now trying to buy
that dip. But I do have to warn you guys,
there is still more more of the potential of Night
(04:33):
being sold off, so please be aware of that now.
This here is an early analysis of what is actually
happening at the moment, and I thought this was pretty
good to look into here. This is from UTXO Maestro.
It pulls up put together this diagram here that shows
where all the night tokens is moving at the moment,
which is interesting. So we've got that five point fifteen
(04:55):
million from the one chain side of things moving over
to an operation wallets within the Kadana ecosystem. So this
is the OPS wallet that moved into it then split
off to the secondary wallet here, so some of that
five hundred and fifteen went to this wallet here, which
had two hundred million night tokens. Wallet one continued to
sell off as much of its night tokens as possible.
(05:18):
We got eighty seven million of NIGHT that went to
USDCX and they're trying to exit out of the ecosystem there.
But from what I've heard and what I've read, it
looked like the usdc X bridge had been closed down too,
so that might be a good thing to stop that
exit ramp. We also have the various DEXes out there
(05:40):
seeing the activity go up. We're seeing night being sold
off for eight A at the moment, and we're also
seeing that being sent out to various centralized exchanges. So
we've got thirty nine deposits to centralize exchange wallets. It
looks like five K went to binance as well, and
they're trying to sell out at that point there, and
(06:03):
we'll see what happens with that. But the interesting thing
here is what is happening with wallet two. And this
is why I said, this is definitely someone within the
Kadina ecosystem because they know what's going on here and
how things work. So wallet two was not just dumping
it put sixty eight million night tokens into liquid. Liquid
finance is borrowing a lending protocol on Kadano, so they
(06:25):
use that night tokens to borrow an extra four point
three six million eight against it, and then sent that
four point three six million eight to back off to
wallet one, where it continued to find ways to exit
out the ecosystem. So that's that's crazy. That's insane. Nice
to see that sixty eight million night tookens being locked
(06:46):
into liquid finance, but that's not going to be repaid.
Speaker 3 (06:49):
That's going to be defaulted on. You can follow all.
Speaker 2 (06:51):
The activity here or the links to the Kadano scan
address on chain address activity A put in the link
scin blow for you guys.
Speaker 3 (07:01):
Crazy stuff, guys, But.
Speaker 2 (07:02):
Like I said, we need to monitor and watch what's
going on here, so make sure you follow in the
Midnight Foundation for updates and accurate information. Various DEXes are
encouraging that as well, and where it's also good to
see that dex is like mint Swap are pausing some
of their features, such as the zap in feature or
the night Ada pools and the night USDC pools that
(07:26):
might make it a little bit harder for the attacker
to exit out of these particular pools and liquidis whatnot.
But we're still seeing dex aggregators pass through and sell
the assets, so we're going to see a lot more
activity guys. And we can see here this is tracking
(07:48):
one of the attacker's wallets here, and they're constantly selling
a lot of the assets through here in three million batches,
so every ten or so minutes they'll sell three million
nine tokens for around two hundred and sixty thousand and eight.
You can see some lots of foil transactions here that
didn't quite make it, maybe slippage or whatever it is.
(08:10):
But if you are buying night tokens, be aware of
what's actually happening here. There's still more activity going on.
We haven't heard from the one Chain team yet. We
haven't seen an official announcement that there has been exploit.
All of this hasn't been confirmed yet. We don't know
exactly what's going on. We don't know if it is
(08:30):
the one chain side of things, or someone gain access
to the wallet and is simply just exiting the ecosystem
and selling all the assets. So we don't know exactly
what's going on here, but it doesn't look good overall.
Speaker 3 (08:46):
So that's all I know at the moment. Guys.
Speaker 2 (08:48):
It's still a developing story.
Speaker 3 (08:50):
We will hear more.
Speaker 2 (08:51):
I'll keep you guys up to date with what's happening here,
but make sure you do follow the Midnight Foundation. It's
good to know that it isn't specifically a Kadana vulnerabile
or a Midnight vulnerability may entirely rest on the one
chain side of things, which is really unfortunate because one
chain's been around for a very long time with a
lot of good uptime uninterrupted for eight years with no
(09:14):
exploits supporting forty eight chains. They've supported the Caadana ecosystem
for a long time, and I really hope this isn't
the case. But we'll find out more as time progresses
and various teams work out what's exactly is going on.
Speaker 3 (09:27):
Not good guys.
Speaker 2 (09:29):
On the upside though, on chaining activities up DEXes are
reaping rewards and guards to fees, but you know, it's
definitely not the way.
Speaker 3 (09:40):
You want to see things.
Speaker 2 (09:41):
Anyway, Guys, try it and stay positive out there. I
know the crypto space is kind of wild at the moment. Anyway, Guys,
if you learn something from this video, make sure you hit.
Speaker 3 (09:49):
That thumbs up. But subscribe notfacash bell.
Speaker 2 (09:52):
If you want to be kept up to date with everything,
make sure you hit the subscribe button.
Speaker 3 (09:56):
Oh god, I've got YouTube memberships down below.
Speaker 2 (09:59):
I got to buy me coffee links great ways support
the channel and like the wise guys, try and stay positive.
Speaker 3 (10:04):
I'll see you in the next video.
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