Qubic has restarted its layer-1 blockchain and launched repayments after a wallet security flaw enabled the theft of about USD 1.4 million in QU tokens from 1,404 accounts. The network resumed operations following an emergency shutdown, while affected holders can now seek recovery through an official claims process. Qubic said its consensus participants approved the plan and that verified owners had already received initial payments.
Qubic Reopens Network After Emergency Shutdown
In its October 20 announcement, Qubic said the Computor quorum authorized the recovery arrangements. The decision followed a halt on October 18, when operators stopped transaction processing to contain the theft. The project has not released the total value of repayments or the number of approved claims.
The attack unfolded between late October 17 and early October 18. According to Qubic's security update, the attacker accessed wallets with predictable recovery seeds and removed approximately 2.94 trillion QU. The team traced the exposure to weak randomness during wallet creation rather than a breach of the network's consensus system.
Operators paused the chain at tick 85,371,949, giving investigators time to identify affected addresses and restrict further transfers. At that point, Qubic estimated that 87.1% of the stolen tokens remained on its network. The remaining 12.9% had reached MEXC, which froze the receiving account within about an hour.
During the shutdown, the project moved affected assets into protected escrow. Its blockchain explorer subsequently showed activity beyond the stopping point. The quorum's approval cleared the way for the network to operate again and for eligible holders to recover funds through verification.
Vulnerable Wallet Seeds Require Complete Replacement
Qubic identified the problem in how certain wallets created secret recovery credentials. Software that produces insufficient randomness can create predictable seeds. An attacker who reconstructs one of those seeds can control the associated wallet without breaking the blockchain itself.
The project's earlier alert named wallets created through browsers on iPhones and iPads, Safari on Mac computers, and older versions of its iOS application. Qubic then released web wallet version 4.26.4 on October 19 to address the weakness.
The updated guidance covers every wallet created with an earlier web version, even when no theft occurred. Users must install the patched software, create a completely new wallet, and move remaining assets. Updating an existing application alone cannot make an exposed seed safe again.
That distinction matters because the compromised credentials remain vulnerable after a software fix. Qubic also cautioned users about fake support agents who offer recovery assistance through unsolicited private messages. The team says it never requests recovery seeds or charges a fee to process claims. Qubic urges users to verify official links before filing.
Read More: Coldcard Hack Raises Security Concerns: What it Means for Hardware Wallet Users
Recovery Claims Require Proof Beyond Signatures
Affected holders have until May 1, 2027, to file through Qubic's official fund reclaim portal. Applicants must provide the compromised wallet address, a secure new destination address, a signed message, and separate evidence establishing ownership. The portal also lets users check whether an address qualifies.
Because an attacker who reconstructs the weak seed can produce the same signature. Qubic therefore reviews evidence that connects the claimant to the wallet before the theft.
Acceptable records include exchange withdrawal receipts, private transaction documents, or a traceable funding history from another controlled wallet. Claimants may also complete optional identity verification, although the platform does not require it. The team reviews stronger, uncontested claims through a faster process.
Approved claims face a seven-day public dispute period before payment, while disputed requests can remain in escrow. The portal says funds that reached MEXC require a separate process involving the exchange and law enforcement. Qubic has not announced a final repayment total or a timetable for resolving every outstanding case.
Conclusion
Qubic has restarted its blockchain and opened recovery claims after a weak wallet seed flaw exposed 1,404 accounts to a USD 1.4 million theft. Repayments have begun, but the project has not released a complete payout figure. Users should replace vulnerable wallets and submit documented claims before May 1, 2027.