“Over 8,600 Solana Wallets Linked to $30 Million DEXX Hack: Recovery Efforts Underway”

Over 8,600 Solana Wallets Linked to $30M DEXX Hack

In a significant breach that continues to unfold, security experts at SlowMist have linked more than 8,620 Solana wallets to the recent DEXX hack, with the total losses now estimated at close to $30 million. The hack, which took place on November 16, targeted the memecoin trading terminal DEXX and remains one of the most devastating crypto hacks of the month.

The DEXX Hack: A Security Nightmare for Users

On November 16, DEXX, a decentralized exchange (DEX) platform known for its memecoin trading, fell victim to a security exploit. The breach has since impacted at least 900 unique users, with many affected by the leak of private keys. Early estimates pegged the total loss at $21 million, making it the second-largest hack in November, only behind the $25.5 million attack on Thala. However, DEXX’s losses have now grown to approximately $30 million, with the fluctuating value of meme tokens exacerbating the damage.

Security firm SlowMist identified over 8,620 Solana addresses linked to the hacker. Most of the victims saw losses under $10,000, but one individual suffered a devastating blow, losing more than $1 million. As of November 29, the hacker has converted the stolen assets into Solana (SOL), making it more challenging to trace and recover the funds.

SlowMist’s Ongoing Investigation and Wallet Tracking

Cos, the founder of SlowMist, confirmed that further efforts are underway to track the stolen funds. “The total loss is estimated to be within $30 million,” Cos told Cointelegraph, noting that fluctuations in meme token prices have played a significant role in the overall financial impact. SlowMist intends to release additional suspicious wallet addresses tied to Ethereum, BNB Chain, and Base in the coming week to further investigate the breach.

DEXX’s Efforts to Recover Stolen Funds

Following the breach, DEXX has been working diligently to recover the stolen assets. The platform has issued public statements confirming that it is monitoring the hacker’s wallets and is actively working to freeze the funds. It has also offered a bug bounty and token reward for the return of the stolen assets within 24 hours, though the hacker has yet to respond to any communication.

“Although we have tried leaving messages on the blockchain and through email, the hacker has not replied,” Bruce, the operations director at DEXX, explained. “We are actively negotiating with capital, counting the amount, and upgrading security issues to restart DEXX. We hope these actions can help compensate our users as much as possible.

”To aid in the investigation, DEXX has partnered with SlowMist and law enforcement authorities. The platform remains committed to compensating affected users, but the compensation plan will depend on the recovery of funds.

The Bigger Picture: A Decline in Yearly Crypto Hacks

While the DEXX hack is still fresh in the minds of the crypto community, it’s part of a broader trend of declining yearly crypto hacks. According to a report from security firm Immunefi, hackers have stolen $71 million in November alone, bringing the total for 2024 to almost $1.5 billion. This represents a 15% drop from 2023, despite major incidents like the $305 million loss from Japan’s DMM Bitcoin exchange and the $235 million theft from India’s WazirX.

Interestingly, not all crypto losses are due to direct hacks. Other illicit activities, such as pig-butchering scams (often originating from Southeast Asia) and phishing attacks, continue to plague the crypto space. In October, for example, ScamSniffer reported $20.2 million in losses from phishing scams, affecting more than 12,000 victims.

A Call for Greater Security in Crypto Ecosystems

The DEXX hack serves as another stark reminder of the vulnerabilities within the cryptocurrency space. With hackers employing increasingly sophisticated methods, it’s clear that crypto platforms must adopt stronger security measures to protect user assets. As DEXX and SlowMist continue their efforts to track down the hacker and recover funds, the larger crypto community will be watching closely, hoping that lessons will be learned and security practices will evolve to mitigate future risks.

As recovery efforts for the DEXX hack continue, the crypto space remains on high alert. With the total losses now nearing $30 million, the breach serves as a significant wake-up call for platforms and users alike to prioritize security and safeguard against evolving threats in the digital asset ecosystem.