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Qubic Brings Blockchain Back Online After $1.4 Million Attack, Sets Recovery Claim Window

Qubic Brings Blockchain Back Online After $1.4 Million Attack, Sets Recovery Claim Window

Affected users have until May 1, 2027, to submit recovery claims through Qubic’s platform.

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 21 October 2026 16:12 IST

Qubic Brings Blockchain Back Online After $1.4 Million Attack, Sets Recovery Claim Window

Photo Credit: Unsplash/Shubham Dhage

Qubic advises affected users to generate new recovery phrases and transfer funds to fresh addresses

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Highlights

The attack affected 1,404 accounts and 2.94 trillion QU
MEXC reportedly froze an account holding 12.9 percent of stolen tokens
Wallet updates alone will not secure addresses with vulnerable seeds

Qubic has relaunched its layer-1 blockchain and started refunding the users of verified wallets following the discovery of the vulnerability in the seed generation process that led to the theft of about $1.4 million (roughly Rs. 13.2 crore) worth of QU tokens from 1,404 accounts. Qubic claimed in an October 20 recovery update on X that its Computor quorum had agreed to the recovery plans, which would allow the network to return to normal operations and initiate the claims process. The first payment had already been made, but the amount paid was not revealed, nor was it stated how many claims were approved.

Qubic Attributes Wallet Breach to Weak Recovery Seed Randomisation

Operations within the chain were resumed following a stoppage initiated on October 18 to stop further theft of tokens from being carried out. Users affected have until May 1, 2027, to make their claims on the recovery platform. The attack took place during the period from late October 17 to early October 18, as per Qubic's previous security update. The hacker managed to access the wallets created using non-random recovery seeds and stole around 2.94 trillion QU.

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The Qubic network is live again. The Computor quorum approved the recovery, the reclaim platform is open, and the first funds have already gone back to verified owners. Here's what's new and what you need to do. https://t.co/2pIM0IfiFB
— Qubic (@_Qubic_) October 20, 2026

The Qubic blockchain was halted at tick 85,371,949. The halt allowed for the necessary time for transfers to be restricted until the team conducted an investigation into the affected addresses and came up with a solution for the Computors. According to the project's calculations, 87.1 percent of the tokens were still present in the network when it was shut down. Meanwhile, 12.9 percent of the tokens had made their way to the crypto exchange MEXC, whose company stated that it froze the recipient's account in about an hour.

The issue arose from a vulnerability in the generation of the wallet seed rather than from the claimed problem with the blockchain's consensus protocol. Lack of sufficient randomness made the recovery phrases predictable, enabling the attacker to recover credentials of the compromised accounts. The first announcement about Qubic's problem mentioned seeds generated by browsers on iPhones and iPads, by Safari on Mac machines, and by earlier versions of their iOS application.

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Qubic officially stores its wallet code on GitHub and claims that version 4.26.4 solved the issue with seed generation. Nevertheless, updating the application will not change the recovery phrase created by the vulnerable software. It is essential that users update the wallet, create a brand new recovery phrase, and move all their funds to the new address. Otherwise, using the old seed will mean that they will remain vulnerable.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Crypto Frauds, Crypto Security, Blockchain Security

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More