A shocking development has recently occurred in the crypto market as the decentralized crypto exchange Dexx has reportedly experienced an exploit. As per Beosin, a well-known blockchain security firm, Dexx has seen above 9k stolen transactions associated with nearly 2.8K compromised addresses. The blockchain security platform took to social media to reveal the respective development.
We collected about 2,800 addresses from some of the victims, with more than 9,000 stolen transactions, and analysed the funds from some of the stolen addresses, found that the stolen funds were deposited in the hacker’s address and had not been transferred out yet.#DEXX https://t.co/Y8kaI5iN8H pic.twitter.com/M6eJNg0Dwu
— Beosin Alert (@BeosinAlert) November 16, 2024
Hacker Drained Above 9k Transactions on Dexx, Raising Concerns above Further Exploit
Beosin pointed out that the drainage of up to 9,000 transactions in the ongoing hack of Dexx raises concerns. The funds are reportedly in the hacker’s wallet. The hacker has not yet transacted the stolen assets up till now. Based on this, the market onlookers are concerned about the likely continuation of the exploitation.
The analysis by Beosin indicates that the exploit originates from a likely private-key leakage. Probably, the leak of a centralized custodian’s private keys has led to this exploit. The respective vulnerability has permitted the attacker to illegally access a huge number of consumer wallets. As a result of this, the hacker drained the funds in significant amounts.
The stolen assets’ cumulative value is going through a review. However, the enormous volume of impacted addresses and transfers denotes the sophistication and scale of the exploit. Beosin is thoroughly examining the address of the hacker to detect any further activity concerning the stolen funds.
Beosin Cautions the Dexx Consumers to Instantly Shift Assets and Stay Vigilant to Avoid Exploitation
While responding to the hack, Beosin has cautioned the Dexx consumers. It has advised them to immediately transact their assets to safe wallets, especially those having resilient private key security. They can also shift them to some offline storage to avoid such attacks. Additionally, Beosin has advised the users to avoid utilizing centralized custodians until the complete resolution of the vulnerability. Moreover, it has also assured the Dexx users that it will keep providing updates regarding the situation.
In line with the data provided by Beosin, the attack highlights the inherent vulnerabilities of the centralized custodians. While decentralized exchanges focus on minimizing dependence on intermediaries, consumers can still get exposed to huge risks due to the weak links. The management of the private keys by the custodians is one of them.