Over 8,620 Solana addresses linked to DEXX hacker.

Over 8000 Solana wallets linked to DEXX theft incident

2024-11-29 by Ndaman Olayinka 4 minutes read
Over 8000 Solana wallets linked to DEXX theft incident

A document published by the cryptocurrency security company SlowMist lists over 8,620 Solana addresses that may be connected to the DEXX hacker.

The entire industry was rocked by a significant security breach at the on-chain trading platform DEXX in November 2024. User assets were widely stolen as a result of a hacker attack, and losses swiftly increased to tens of millions of dollars. Due to this incident, DEXX's security architecture was found to have fatal flaws, turning it from a platform that was commended for its "non-custodial" features and easy, effective trading experience into a negative example that was talked about in the industry.

SlowMist estimates DEXX exploit total loss to be around $30 million

A security flaw in the memecoin trading terminal DEXX on November 16 resulted in losses for at least 900 unique users. A private key leak cost the majority of victims less than $10,000, but one person lost more than $1 million, according to MistTrack. The stolen assets were being converted into Solana by the hacker. 

Initially, the incident's total loss was estimated to be $21 million, making it the second-largest hack in November after the $25.5 million Thala hack, even though Thala was able to recover lost assets.

According to a report by Cointelegraph Cos, the founder of SlowMist said the DEXX's overall loss increased as of Nov. 29. It is estimated that the entire loss will be within $30 million. The total loss is significantly impacted by the price fluctuations of meme tokens, Cos continued.

Next week," SlowMist plans to release more dubious wallet addresses on Ethereum, Base, and BNB Chain, Cos added.

DEXX partners with SlowMist to investigate the exploit

DEXX confirmed on social media after the attack that it was keeping an eye on the hackers' wallets and working to freeze the stolen funds via the exploit. If the stolen assets were returned within 24 hours, the platform also offered a bug bounty and token reward. On Nov. 23, a similar plea was made. In addition to promising to reimburse impacted users, DEXX has partnered with SlowMist and law enforcement to investigate the hack. The amount of recovered funds will still determine the compensation plan.

$71 million has been stolen by hackers in November

ScamSniffer reports that 12,000 victims lost $20.2 million to phishing scams in October. In addition, according to a recent report by security firm Immunefi, hackers stole $71 million in November, bringing the total amount stolen this year—with one month remaining in 2024—close to $1.5 billion.

Despite significant incidents like the $305 million loss in Japan's DMM Bitcoin exchange and the $235 loss from India's WazirX, that represents a 15% decline from 2023 thus far. In addition, CoinGecko users were the target of more than 23,000 phishing emails earlier in June, and a Chinese trader lost $1 million in a phishing scam attack.

A breach involving $1.7 million in stolen assets was also reported by XT Exchange, which is registered in the Seychelles. The stolen fund was tracked by blockchain security company PeckShield and exchanged for 461.58 ETH. In response, XT assured users that its reserves could cover all possible losses and promised transparency by implementing a Merkle Tree Asset Proof System.

According to a report, the US, China, and the UK were the origins of a sizable portion of cryptocurrency scams and failed projects. The time frame for this was January 2022–October 2024. The frequency of cryptocurrency scams and failed projects was revealed by a study conducted by 5Money and Storible, which examined 1,544 global cryptocurrency projects during this period.

With 43% of all cryptocurrency scams attributed to American founders, the US emerged as a major contributor. High-profile collapses like FTX in 2022 and the sheer volume of cryptocurrency ventures started in the US are largely to blame for this. China and the UK were next in line, accounting for 8% and 7% of cryptocurrency scams, respectively.

Disclaimer

This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.