DEXX platform suffers a major cyber attack, on-chain Meme market is impacted

On the night of November 16th, a certain decentralized trading platform suffered a major cyber attack, resulting in a large amount of user assets being illegally transferred. Preliminary estimates suggest that the loss could reach up to 100 million USD. Security experts have pointed out that user private key information has been leaked, but the specific leakage channels are still under investigation. This incident has dealt a significant blow to the recently active on-chain Meme market and has once again raised concerns about the security of on-chain assets.

Latest Developments in the Event

The platform occupies an important position in the Meme space, providing trading, liquidity, launch, staking, and lending services for Meme tokens, forming a complete Meme financial ecosystem. Its daily trading volume has long ranked at the top among DEXs, earning it the title of the on-chain "leader" of the Meme coin market.

Preliminary investigations confirm that the scale of the stolen funds has reached over 100 million yuan, and the hackers are still continuously transferring user assets. Technical analysis reveals that there are serious security vulnerabilities on the platform:

1. Non-custodial platforms that record user private keys can be easily compromised by hackers during system attacks.
2. The user did not take encryption measures when exporting the private key, and the private key is transmitted in plaintext, making it easy to be intercepted.

On November 17, the platform founder responded to the concerns about being out of contact, stating that due to special reasons, they are temporarily unable to provide updates and requested processing time. Previously, the official statement indicated that they are working hard to resolve the issues, promised not to run away, and will report progress in a timely manner. The founder stated that they will compensate users for their losses and that some user accounts have been isolated.

However, as the amount stolen continues to rise, most users are skeptical about the platform's promises, even suspecting that this is an inside job. The community found that, through developer tools, it is visible that when users export their private keys, they are presented in plaintext, meaning the private keys are actually stored on the official servers. Even with HTTPS transmission, the direct transmission of private keys may lead to the leakage of private data due to browser vulnerabilities and other issues.

Impact on the Meme Market

According to market data, several Meme tokens have experienced varying degrees of decline:

• BAN fell by approximately 30%
• LUCE has dropped by about 20%
• PNUT may drop by about 12.5%

It is worth noting that the hacking attacks are not over. If the platform's security team fails to address the issue in a timely manner, user assets may continue to suffer losses. As of the 17th, at least $13 million has been confirmed stolen, but the actual losses may far exceed this amount. In addition to stablecoins, various popular Meme coins such as BAN, Pnut, BITCAT, etc., have also been stolen.

The security team stated that they have currently collected about 2,800 victim addresses and analyzed over 9,000 stolen transactions. The stolen funds are still held in addresses controlled by the hacker and have not yet been transferred. This means that the hacker's "ultimate goal" has not yet been revealed, bringing great uncertainty to the Meme market.

Security Suggestions for Funds

1. Store major assets using a hardware wallet, choosing mainstream brands like Ledger, Trezor, and ensure the firmware is up to date.

2. Distribute storage of assets to avoid concentration in a single address or exchange.

3. Choose a verified decentralized custody solution, such as a multi-signature wallet.

4. Review the security of the exchange or platform, paying attention to whether it conducts regular third-party security audits.

5. Consider purchasing crypto insurance against hacker attacks.

6. Be cautious of recommendations from others and conduct in-depth research on the product mechanisms.

7. Prioritize automated tools that have been running for a long time, have a strong team, and no record of security issues.

8. Be cautious of online scams on social platforms, do not click on unknown links, and do not respond to unsolicited private messages.

9. Transfer funds to a self-controlled wallet promptly after large transactions.

10. It is recommended to read "The Dark Forest Self-Help Manual for Blockchain" to strengthen security awareness.

This incident reminds us once again that security is always the top priority in the rapidly evolving cryptocurrency market. Investors must remain highly vigilant and take multiple measures to protect the safety of their assets.