In 2025, Sovryn, a Bitcoin-based decentralized exchange, suffered a $2 million exploit due to a cross-chain vulnerability. The attack targeted a flaw in Sovryn’s smart contract, likely an external call vulnerability, allowing unauthorized access to funds. The lack of robust input validation in the cross-chain bridge enabled the attacker to manipulate transaction data, siphoning assets. This incident highlights the fragility of cross-chain systems, where interoperability often introduces security risks. Mitigation requires rigorous smart contract audits, semantic and syntactic validation, and real-time monitoring. Sovryn’s response included pausing affected contracts and enhancing security protocols. The exploit underscores the need for standardized auditing and proactive measures to safeguard DeFi platforms against evolving cyber threats.