Over 8,600 Solana Wallets Linked to Dexx Hacker: SlowMist

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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November 29, 2024 10:54 EST

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On November 28, crypto security firm SlowMist released a report identifying over 8,620 Solana wallets potentially linked to the recently exploited memecoin trading platform DEXX. The security breach occurred after a vulnerability in the platform’s system was exploited, resulting in substantial losses for users, with at least 900 individuals affected.

SlowMist Estimates DEXX Hacker Exploit Losses at $30 Million

SlowMist founder Cos revealed to Cointelegraph that the total financial damage from the DEXX hacker exploit is estimated at $30 million. This figure, however, is influenced by the volatile nature of meme token prices, which played a significant role in determining the final loss amount.

The hack targeted assets that were transferred into Solana wallets, where SlowMist has already identified over 8,600 wallets suspected of being linked to the exploit. These wallets are believed to have received stolen funds following the breach.

To broaden the scope of their investigation, SlowMist has announced plans to release additional lists of suspicious wallet addresses on other major blockchain networks, including Ethereum, BNB Chain, and Base, sometime next week.

The revelations about stolen assets on Solana build on the broader context of DEXX’s recent security breach, which occurred on November 16. This incident was traced back to a private key leak within a centralized custody model, which exposed vulnerabilities in how the platform manages user assets.

Under this system, the trading platform controlled private keys, which are critical for securing user accounts. While this setup simplifies trading and operations, it creates a single point of failure that leaves users’ funds exposed to immediate threats once the keys fall into the hands of hackers.

SlowMist disclosed that most victims of the DEXX hacker exploit lost less than $10,000 due to the private key leak, although one individual suffered a staggering loss exceeding $1 million.

In response to the attack, DEXX issued a statement on X, assuring users that it was actively monitoring the hacker’s wallets and taking steps to freeze the stolen funds. Initial reports estimated the total losses from the breach at $21 million.

To address the fallout, DEXX has collaborated with SlowMist and law enforcement to investigate the incident thoroughly.

DEXX Hacker and Thala Breach Rank Among November 2024’s Largest Exploits

Some of the most significant security breaches in the crypto space took place in November 2024, with the DEXX hacker incident taking center stage.

Crypto security firm SlowMist estimates the total losses from the DEXX exploit at $30 million, making it the largest hack so far this month. Close behind is the $25.5 million breach of decentralized finance firm Thala Labs, which has also captured widespread attention.

While the losses from the DEXX hack remain unrecovered, Thala Labs managed to secure the return of its stolen assets in an unusual turn of events.

DEXX, which has yet to recover from the attack, joins a growing list of victims in a year that has seen billions in crypto losses.

For context, the crypto space has been plagued by phishing scams and breaches in recent months. In October, the anti-scam organization ScamSniffer reported that $20.2 million was stolen from 12,000 phishing victims.

Earlier in June, a Chinese trader lost $1 million in a phishing scam attack, while CoinGecko users were targetted by over 23,000 phishing emails.

A recent report has even highlighted the US, China, and the UK as leaders in crypto scams and failed projects. This rising trend is a stark reminder of the need for enhanced security measures within the digital asset industry.