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Multiple users have been compromised on Abstract Chain, an EVM-compatible L2 solution, though the issue was limited to specific wallets. Abstract Chain says its platform remains secure, and no network-wide issue has been noticed.

Abstract Chain users with exposure to the Cardex app may be individually affected, as noticed by on-chain investigators. 

The Abstract Chain team confirmed that the network is secure and that no attacks occurred on any wallets. The team tracked the problem to a specific app.

We are aware of some Abstract users being compromised and want to assure everyone it is not a network wide Abstract Global Wallet (AGW) issue.

This issue seems to be isolated to an app (seems to be Cardex, please do not interact for the time being), we are working to get to the…

— 0xBeans (@0x_Beans) February 18, 2025

They did not announce the amount of drained funds and aim to keep the vulnerability a secret to prevent further losses.

Cardex went live on the Abstract Chain after February 12 and has already met with the first problem of the partnership. Cardex is a collectible and gaming app, currently running an active tournament, which may have exposed more wallets. Amid the chaos, users have suggested activating 2FA for all Abstract Chain accounts. 

Abstract Chain wallet affects other wallets and accounts

Some Abstract users noted all types of wallets were drained, not only those that engaged with Cardex. Web3 investigators also identified the attack as a ‘first session key hack’. A malicious session that connected the wallet to an app gave the exploiter access to all wallets for a month. 

Currently investing the "first session keys hack" on @AbstractChain. Sent relevant info to the team !

This malicious SC :0xee580828b426b6cc33817bCE419DaF65a516aA7e got users rights from a session keys signature giving full rights on wallet for approx 1 month.

It's a big one :/ pic.twitter.com/wNxjHC6ngl

— RpGmAx (@RpGmAx) February 18, 2025

After the recent hack, on-chain investigators advised users to disconnect from all apps, especially Cardex. Users are urged to move their funds from the wallets, and remove all permissions for Cardex.

An ongoing investigation found the address that is accumulating funds from compromised wallets. Less than two hours after the hack, the amount was relatively minor: $24,520, mostly in Ethereum (ETH), with no other coins or tokens affected. 

Additionally, the malicious wallets may hold up to 50 ETH, with wallets draining still ongoing. When a wallet has been compromised, it checks for sufficient gas. However, because it has given permission to the malicious session contract, it will send the funds to the address of the exploiter.

There are also rumors that even wallets with 2FA activated can be drained, as they have given permission to the contract. 

The final balance in the exploiter’s wallet is unclear, as there are data of up to $81,000 drained. The funds were apparently moved, though no outgoing transaction is found. 

On-chain data showed over 7,000 incoming transactions sent to the hacker’s wallet. This level of activity points to the possible number of affected wallets. Most of the transactions are for minimal amounts of ETH, as the wallets are used for small-scale on-chain usage and fun apps. 

Wallet hacks threaten Web3 adoption

Abstract wallets, which offered a login similar to regular web services, were seen as one of the answers to wider Web3 adoption.

The Abstract Chain wallet hack revealed those tools are not entirely suited for users with no blockchain experience. App connections are still risky, as any contract in the ecosystem can be compromised.

Currently, the only known safeguard is to stop permissions for all apps, and move the funds to a safe wallet if possible. The attack also showed signs of stopping after a total of 17,304 incoming transactions exhausted the pool of vulnerable wallets.

The amount of funds drained reached $31,570. Other estimates saw the funds flow out of the hacker’s wallet and pinned the losses at over $100,000 since the start of the exploit. Estimates vary wildly, with some on-chain explorers noticing up to 300 ETH drained. 

Abstract Chain allows users to create sessions for apps, which may expose their addresses. The chain remained highly popular, as it is linked to the Pudgy Penguins community. However, the user sessions and app permissions may be an ongoing weakness to compromise wallets.

Cryptopolitan Academy: Are You Making These Web3 Resume Mistakes? - Find Out Here

Pi Network (PI) IOU price, which represents the pre-market valuation of PI before its official launch, has been highly volatile as anticipation builds. As one of the most hyped crypto launches ever, Pi Network’s Open Network is set to go live on February 20, leaving users questioning what its actual launch price will be.

Recent technical indicators suggest that PI IOU is at a crucial point, with both trend strength and momentum showing potential signs of weakness. Whether the price will break down further or stage a strong rebound remains the key question for traders ahead of the mainnet launch.

PI DMI Shows a Strong Downtrend Could Appear

Pi Network is attracting a lot of hype before its official launch, with its search interest reaching new highs. From a technical perspective, its DMI chart for PI shows its ADX at 45.2, down from 55.8 yesterday. ADX (Average Directional Index) measures trend strength, with values above 25 indicating a strong trend and below 20 suggesting weakness.

A reading above 50 often signals an overheated trend that could slow down. While PI’s ADX remains strong, its decline suggests the trend is losing some momentum but is still intact.

PI DMI. Source: TradingView.

+DI has dropped sharply from 55.5 to 23.6, while -DI has risen from 3.3 to 16.5. This shift indicates weakening bullish pressure and increasing bearish strength, which could lead to more corrections, though buyers still hold an edge.

PI’s EMA lines remain in a bullish setup, with short-term lines above long-term ones, reinforcing the broader uptrend. However, if ADX keeps falling and -DI overtakes +DI, it could signal a trend reversal or consolidation ahead.

PI RSI Is Down After Touching 86

Pi Network RSI is currently at 40.5, dropping from 86.2 two days ago after spending over a day above 70.

The Relative Strength Index (RSI) measures momentum on a scale from 0 to 100, with values above 70 indicating overbought conditions and below 30 suggesting oversold levels.

A sharp decline like this often signals weakening buying pressure and a potential shift in market sentiment, as some exchanges, like Binance, have been relying on community votes to decide whether to list the asset.

PI RSI. Source: TradingView.

With PI’s RSI now at 40.5, it suggests the asset has lost significant bullish momentum but hasn’t yet reached oversold territory. This level implies that sellers are in control, but price action remains uncertain.

If RSI continues to drop toward 30, it could indicate further downside, while a stabilization around 40 might suggest consolidation before the next move.

PI Price Prediction: Current Price Aligns With Potential Launch Price

Pi Network EMA lines remain bullish, with short-term lines still above long-term ones, but they are declining quickly as the PI IOU price has dropped over 8% in the past 24 hours.

If this downtrend continues, a death cross could form, a bearish signal that often precedes further declines.

If a death cross occurs, PI IOU could test the $53.3 support, and losing that level could send it as low as $33.6.

PI IOU Price Analysis. Source: TradingView.

However, if the price rebounds, it may target resistance around $100, a potential 38% upside from current levels.

This aligns with a recent technical perspective from BeInCrypto discussing Pi Network’s possible launch price.

A new scam is on the rise. The "share-seed-phrase" scam tricks users into sending funds to "safe" wallets controlled by scammers.

Stay vigilant and never share your private information! ⚠️