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According to a late-October post by SlowMist founder Cosmos Yu, ownership of the 402bridge contract was altered following an apparent private key breach. The update stops short of alleging insider wrongdoing and emphasizes that this does not constitute a rug pull.
Within 48 hours of 402bridge.fun’s launch, the service ceased operations. Reports indicate the unauthorized activity drained USDC that users had authorized for the bridge contract, marking the first publicly documented DeFi security incident connected to the 402 protocol.
The episode underscores the need for rigorous governance, comprehensive security audits, and rapid incident response for cross‑chain facilities. As investigators assess the event, market participants should monitor key management practices and risk disclosures to support informed crypto risk management.
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