As a seasoned analyst with over two decades of experience in the digital asset space, I’ve seen my fair share of hacks and security breaches. The latest incident involving DEXX is yet another grim reminder of the risks associated with decentralized exchanges.
The cybersecurity company specializing in cryptocurrency, SlowMist, has made public a report listing over 8,620 Solana wallets that are believed to be associated with the hacker responsible for the DEXX incident.
On November 16th, the meme-based trading platform DEXX suffered a breach due to a security vulnerability, affecting at least 900 distinct users and causing financial losses.
Based on information from MistTrack, it’s been found that the majority of cases where people lost less than $10,000 were caused by leaked private keys. Remarkably, an individual suffered a loss exceeding $1 million due to this issue.
Originally, it was stated that the incident resulted in a loss of approximately $21 million, making it the second-biggest hack in November, surpassed only by the $25.5 million Thala hack. However, it’s important to note that Thala successfully recovered all its lost assets.
As of Nov. 29, DEXX’s total loss has risen, SlowMist founder Cos told CryptoMoon.
As I delve into my analysis, I’ve found that the potential damages are anticipated to fall within the range of $30 million. It appears that the volatile shifts in the value of meme tokens significantly contribute to this total estimated loss.
The hacker was seen converting the assets into Solana (SOL).
According to Cos, SlowMist plans to share more potentially dubious wallets on Ethereum, BNB Chain, and Base in the upcoming week.
DEXX attempts to negotiate with hacker in recovery efforts
After the incident, DEXX took to social media to announce they were keeping tabs on the suspected hackers’ digital wallets and actively trying to lock up the associated funds.
Additionally, the platform provided incentives such as a bug bounty and token rewards for anyone who managed to return the stolen assets within a day. This same appeal was made public on November 23rd.
As Operations Director for DEXX, I’ve been making efforts to reach out to the suspected hacker through messages on the chain and emails, but so far, there’s been no response. Simultaneously, we are actively collaborating with our capital sources, calculating necessary funds, and enhancing security measures in an attempt to get DEXX back up and running. I sincerely hope that these actions will mitigate the impact on our users to the fullest extent possible.
DEXX is collaborating with SlowMist and law enforcement agencies to probe the recent attack, and they pledge to reimburse affected users. Yet, the exact method of compensation will hinge on the amount of funds that can be retrieved.
A drop in total yearly hacks
In November alone, hackers managed to swipe approximately $71 million, as revealed in a recent study conducted by cybersecurity company Immunefi. This adds up to an estimated annual theft of nearly $1.5 billion, leaving just one month in 2024 for the total yearly losses to potentially reach this staggering figure.
To date, there’s been a decrease of 15% compared to 2023, even given significant events such as the $305 million loss at Japan’s DMM Bitcoin exchange and the $235 million loss at India’s WazirX.
Criminals employ numerous strategies to swipe cryptocurrencies beyond hacking, such as the so-called “pig butchering” frauds, which are believed to be orchestrated from scam centers in Southeast Asia, and phishing scams that allow harmful software to infiltrate victims’ wallets.
Based on ScamSniffer’s data, a total of $20.2 million was swindled from approximately 12,000 individuals due to phishing scams in October. However, the amount stolen decreased by 56%, while the number of victims increased by 20%.
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2024-11-29 14:01