$2.7 Million Hack Hits OKX's Decentralized Exchange Due to Leaked Admin Key
Summary:
The decentralized exchange (DEX) of cryptocurrency platform OKX suffered a $2.7 million hack when the proxy admin owner's private key was leaked. The attack occurred soon after proxy contract upgrades and was announced by blockchain security firm SlowMist Zone. Analysis by SlowMist and on-chain firm Scopescan revealed continuous token exploitation due to a potential security breach. The OKX DEX confirmed that the hacked contract was old and abandoned, and has since been located and halted. The platform has pledged to cover all user losses from this breach. Blockchain security company PeckShield attests the total loss to be approximately $2.7 million.
The cryptocurrency exchange platform, OKX's decentralized exchange (a.k.a OKX DEX), experienced a theft amounting to $2.7 million on December 13 when it was revealed that the private access key of the proxy admin owner had been exposed. The issue was made public on the same day by the blockchain security firm, SlowMist Zone, via a post on the social media platform, X (formerly known as Twitter). They reported that the problem started around 22:23:47 on December 12, 2023, soon after an upgrade had been made to the DEX proxy contract by the proxy admin owner and tokens began being siphoned off unlawfully.
SlowMist detailed that the contract was again upgraded by the proxy admin owner roughly around 23:53:59 which lead to more tokens being unscrupulously misappropriated. Based on SlowMist's analysis, it is possible that the attack could have been a result of the private access key of the proxy admin owner being exposed. Consequently, the DEX Proxy was taken off the platform's list of trusted entities.
Scopescan, a firm specializing in on-chain analysis, also reported this breach as it became known to the users. Scopescan revealed that, upon contact, the DEX informed them that an older, abandoned contract had been exploited. The DEX has since managed to locate and halt the attack. Furthermore, the DEX confirmed that it will completely cover any losses incurred by users as a result of this breach.
PeckShield, another blockchain security company, reported that the total monetary loss due to this attack on OKX DEX was to the tune of $2.7 million, comprised of various different cryptocurrencies. They advised users who had any dealings with OKX DEX to immediately revoke their allowances.
A user on the X platform cautioned people not to blindly assume that their assets are safe simply because they are in a decentralized system, highlighting how this breach with OKX DEX was a stark reminder of the reality.
According to data gathered prior to September 2023, the industry has endured a hard hit this year with losses totalling $1.5 billion as a result of various crypto exploits, scams, and hacks. Further losses were reported in the fourth quarter, when Poloniex suffered a massive blow with more than $100 million in digital assets being lost, and the HECO Chain bridge hack leading to the loss of more than $80 million.
Published At
12/13/2023 1:15:59 PM
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