White hackers help dYdX exchange secure $ 2 million in user deposits

Decentralized cryptocurrency exchange (DEX) dYdX warned users about the vulnerability of a smart contract launched on November 24. The bugs were found by a “white hacker”.

dYdX
reported on Twitter that users should withdraw assets from the exchange to their cryptocurrency wallets.

“All users who have placed deposits since Wednesday 24 November are advised to withdraw their assets as soon as possible. Your money is not at risk, but must be returned back to your wallets. ”

This is due to the fact that a white hacker under the nickname Samczsun, together with the security service of the dYdX trading platform, was able to identify a number of vulnerabilities in the smart contract. Thanks to timely intervention, the platform was able to protect potentially vulnerable deposits of over 700 users, worth about $ 2 million.

dYdX advised users not to send deposits to DEX until the operator advises that it is safe. The exchange reported that the accounts of users who did not use the new smart contract in the Layer 2 Perpetuals product were not affected during the elimination of the vulnerability.

In the course of eliminating the errors of smart contracts, the services for creating deposits without commission were disabled. The exchange will notify users of the restoration of this feature. The site will also provide a full report on the incident.

Amid the increasing incidence of cyber attacks and fraud in the DEX sector, it is fortunate that the vulnerability was discovered and localized in time. Analyst firm Elliptic recently reported that crime-related losses in the DeFi market increased sevenfold in 2021. Not surprisingly, the DeFi sector has become a target of hackers lately. According to the Chainalysis report, trading volume on large DEXs grew by 550% in 2021, and the security of many platforms is not at the highest level.