DeFi Bridge Exploit: Hacker Mints 46 Billion Fake BTC from $0.25 in Bitcoin

A critical vulnerability on a decentralized finance (DeFi) bridge allowed an attacker to generate 46 billion counterfeit BTC tokens using only 25 cents worth of Bitcoin. The incident highlights severe security flaws in cross-chain protocols, raising concerns about the integrity of wrapped asset minting. The exploit did not involve real Bitcoin but exploited a logic error to mint unbacked tokens, which could have destabilized markets if liquidated. This event underscores the urgent need for rigorous smart contract audits and real-time monitoring in DeFi. Traders and investors are advised to exercise caution with bridged assets and verify reserve backing. The hacker’s ability to create such a massive supply from a negligible deposit points to systemic risks in interoperability solutions.