OKX DEX Loses Over $400,000 To Hackers – What Happens To Customer Funds?

Christian Encila

1 year ago

3 mins read

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According to blockchain security company SlowMist, OKX DEX, a decentralized exchange aggregator platform, lost cryptocurrency valued at over $400,000.

An attacker was able to transfer tokens that users had not allowed by compromising the management privileges of a market maker contract, according to the explanation for the vulnerability.

On the OKX DEX aggregator platform, a deprecated proxy contract was the subject of a recent vulnerability that allowed a hacker to obtain administration access to the contract without authorization.

OKX DEX: Deprecated Contract Raises Concerns

When a protocol stops actively using a contract to carry out user transactions, it is considered deprecated. It appears that OKX has updated the contract but hasn’t entirely stopped using it.

🚨SlowMist Security Alert: OKX DEX Proxy Admin Owner’s Private Key Suspected to be Leaked🚨

According to information from SlowMist Zone, the OKX DEX contract appears to have encountered an issue. After SlowMist’s analysis, it was found that when users exchange, they authorize…

— SlowMist (@SlowMist_Team) December 13, 2023

The claimTokens function of the OKX DEX smart contract experienced a problem, according to blockchain security firm SlowMist. The TokenApprove contract, which required user authorization, invokes the ability to send cash to a trustworthy DEX Proxy.

On December 12, the SlowMist team reported that the OKX DEX Proxy Admin Owner upgraded the DEX Proxy contract with a new implementation. The purpose of this new implementation was to invoke the claimTokens function straight from the DEX contract.

Total crypto market cap at $1.51 trillion on the daily chart: TradingView.com

The exchange said that 18 of the approved addresses for the contract had been compromised, and linked the event to the management rights of a cancelled OKX DEX market maker contract being compromised.

Additionally, the exchange pledged to pay back all impacted users. It would also carry out a comprehensive security examination in order to stop something similar from happening again.

We regret to inform you that a deprecated smart contract on OKX Dex has been compromised. We have taken immediate action to secure all user funds and revoke the contract permissions. We are working with relevant agencies to locate the stolen funds and will reimburse affected… pic.twitter.com/zDIjhb3ETz

— OKX Web3 (Wallet | DeFi | NFT) (@okxweb3) December 13, 2023

OKX Hack: Actual Damages Unknown

According to PeckShield, another researcher specializing in blockchain security, this vulnerability has cost over $2.76 million.

In the last 30 days, OKX DEX is thought to have had over 50,000 active user wallets; however, it is unknown how many users were impacted by the most recent hack.

Users should employ caution while communicating with DeFi protocols, especially those supported by well-known firms in the industry, as highlighted by the OKX DEX breach.

Featured image from Shutterstock

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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