Reviewing the large-scale theft of DEXX user funds, on-chain security is no joke.

CN
3 days ago

Original | Odaily Planet Daily (@OdailyChina)

Author | Asher (@Asher0210)_

Review of the large-scale theft of DEXX user funds, on-chain security is no joke

This morning, members of various Meme communities, who were supposed to wrap up a night of busy "dog fighting," were suddenly stirred by a piece of news. The on-chain trading terminal DEXX was attacked, with multiple users confirming that their funds were transferred. The attack spanned multiple chains, involving a wide variety of asset tokens, leading to a rapid short-term decline in several meme coins.

Dexx is a full-chain Memecoin trading platform that supports various on-chain assets such as SOL, ETH, TRX, BASE, and BSC. It primarily promotes features like on-chain mobile take-profit and stop-loss, hot concept push notifications, smart wallet tracking, doubling capital, one-click anti-squeeze, and one-click follow-buy and follow-sell.

In response to the DEXX user fund theft incident, Slow Mist founder Yu Xian posted on the X platform, stating, "The stolen group is related to using DEXX for pumping dog coins/trading MEME, the private keys belong to DEXX's centralized custody, which must have leaked, and the investigation into how it leaked will be disclosed." In no time, various Meme communities erupted in anger:

  • "Woke up in the middle of the night to find $20,000 stolen from DEXX; all my hard work over the past month has gone to waste. I will never touch such centralized wallets again.";

  • "Speechless, I just registered and transferred 100 SOL in, and it got stolen. No wonder so many KOLs recommended it.";

  • "I liquidated all my Meme; many wallets were stolen this time, and hackers will dump the coins, leading to a potential crash for all Memes.";

    ……

Many users stolen, large amounts

Due to the large number of users affected, a "rights protection group" was quickly established to register stolen information. The following image shows the record of stolen funds (as it was filled out by the stolen users, only some data has been confirmed as true). Meanwhile, Slow Mist founder Yu Xian also stated, "Based on the data submitted by community users, we estimate that the losses from DEXX theft amount to millions of dollars, and these funds are currently scattered across multiple different hacker addresses."

Other community users have also reported a total amount exceeding ten million dollars. As the complete statistics on the addresses have not yet been finalized, the total stolen amount cannot be definitively determined, but feedback from community users indicates that there are many who lost tens of thousands, hundreds of thousands, or even millions.

Review of the large-scale theft of DEXX user funds, on-chain security is no joke

Screenshots of user registrations of stolen information in the DEXX rights protection group (names have been redacted)

DEXX's official response denies RUG, but suspicions of self-theft arise

After the theft incident, DEXX's Chinese official account posted a response on the X platform: "Currently, DEXX has noticed the issue of tokens being transferred as reported by multiple users, and several professional security audit teams are already analyzing and investigating. The team is working hard to resolve the issue, and there is no RUG. Further updates will be communicated promptly through in-site notifications and X/Telegram."

Review of the large-scale theft of DEXX user funds, on-chain security is no joke

DEXX Chinese official response to the large-scale theft incident

The personal information of DEXX's founder was also exposed. DEXX founder Roy (@honza204) later responded to the theft incident, stating: "We will compensate, isolated some users, there is no RUG, we are investigating, and cannot respond to everyone individually, please rest assured."

Review of the large-scale theft of DEXX user funds, on-chain security is no joke

DEXX founder's response to the large-scale theft incident

However, this response has not been followed up, and users are not convinced, questioning whether DEXX is intentionally running away or engaging in self-theft.

DEXX rose to prominence during this round of Meme frenzy in a short time, primarily relying on KOL promotions to quickly gain users. According to KOLs who spoke to Odaily, the current bots offer very high commissions to rapidly acquire users, with some reaching as high as 50%-60% of transaction fees. Given the current influx of new coins, such income is quite substantial.

After the DEXX incident, many KOLs who previously promoted DEXX and described it as "the Binance of on-chain" began to quickly delete posts and distance themselves from it. The most criticized was the X KOL 游民 (@youmin8341), who previously flaunted exorbitant commissions.

After the incident, 游民 immediately tweeted @ DEXX's founder, stating that he had never withdrawn his commissions, and netizens queued up to mock, "Two sticks break brotherhood, the record is all brother names."

Review of the large-scale theft of DEXX user funds, on-chain security is no joke

Review of the large-scale theft of DEXX user funds, on-chain security is no joke

Safety recommendations

Meme undoubtedly represents one of the hottest sectors with the most wealth creation opportunities in this bull market, and engaging in on-chain operations and using various bots has become a daily habit for users. The recent "DEXX attacked, user funds stolen" incident should serve as a wake-up call for the industry. To avoid incidents like "working hard for months to earn SOL, only to end up working for hackers," Odaily Planet Daily has compiled some safety recommendations, urging everyone to be extremely cautious about on-chain asset security:

  • Do not blindly trust others' recommendations; study the product mechanisms well, and it is advisable to use bots that do not store private keys on servers;

  • Choose bots that have been operating for a longer time, have a strong team, and have no record of security incidents;

  • Do not click on unfamiliar links in TG groups, and do not respond to any private messages;

  • Regardless of the tools used, it is recommended to withdraw large amounts of funds to self-custody wallets after transactions;

  • ……

Previously, incidents of theft have occurred with Bnanagun, Unibot, etc., and DEXX will not be the last.

Remember, in the dark forest of Web3, only those who survive until tomorrow have a chance.

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