Over 8,600 Solana Wallets Linked to Dexx Hacker: SlowMist

On November 28, crypto security firm SlowMist released a report identifying over 8,620 Solana wallets potentially linked to the recently exploited memecoin trading platform DEXX. The security breach occurred after a vulnerability in the platform’s system was exploited, resulting in substantial losses for users, with at least 900 individuals affected.

SlowMist Estimates DEXX Hacker Exploit Losses at $30 Million

SlowMist founder Cos revealed to Cointelegraph that the total financial damage from the DEXX hacker exploit is estimated at $30 million. This figure, however, is influenced by the volatile nature of meme token prices, which played a significant role in determining the final loss amount.

The hack targeted assets that were transferred into Solana wallets, where SlowMist has already identified over 8,600 wallets suspected of being linked to the exploit. These wallets are believed to have received stolen funds following the breach.

After several days of careful data collection and analysis by our team, we are now making the list of hacker addresses public. https://t.co/adMTiBkeyS https://t.co/D0pVQzcbNQ pic.twitter.com/p7jlKawuZM

— MistTrack🕵️ (@MistTrack_io) November 28, 2024

To broaden the scope of their investigation, SlowMist has announced plans to release additional lists of suspicious wallet addresses on other major blockchain networks, including Ethereum, BNB Chain, and Base, sometime next week.

The revelations about stolen assets on Solana build on the broader context of DEXX’s recent security breach, which occurred on November 16. This incident was traced back to a private key leak within a centralized custody model, which exposed vulnerabilities in how the platform manages user assets.

注意下 DEXX 这个交易工具，好些用户被盗，大早上各渠道请求到我们这的被盗用户就好几个，损失有大有小。被盗时间集中，损失估计不小，有些用户及时发现撤走了部分资金。被盗人群与用 DEXX 做冲土狗/炒 MEME 有关，私钥属于 DEXX 中心化托管，肯定泄露了，至于泄露方式等调查披露。 https://t.co/Qwt5DwBU4b

— Cos(余弦)😶‍🌫️ (@evilcos) November 16, 2024

Under this system, the trading platform controlled private keys, which are critical for securing user accounts. While this setup simplifies trading and operations, it creates a single point of failure that leaves users’ funds exposed to immediate threats once the keys fall into the hands of hackers.

SlowMist disclosed that most victims of the DEXX hacker exploit lost less than $10,000 due to the private key leak, although one individual suffered a staggering loss exceeding $1 million.

DEXX Incident Report (as of Nov 16, 9:00 UTC):

We’ve received 590+ reports of stolen funds from the community. After removing duplicates, over 500 unique victims have been identified, with total losses estimated at $13 million (subject to price fluctuations).

Our team is still… https://t.co/aoPWayvPUZ

— MistTrack🕵️ (@MistTrack_io) November 16, 2024

In response to the attack, DEXX issued a statement on X, assuring users that it was actively monitoring the hacker’s wallets and taking steps to freeze the stolen funds. Initial reports estimated the total losses from the breach at $21 million.

To address the fallout, DEXX has collaborated with SlowMist and law enforcement to investigate the incident thoroughly.

DEXX Hacker and Thala Breach Rank Among November 2024’s Largest Exploits

Some of the most significant security breaches in the crypto space took place in November 2024, with the DEXX hacker incident taking center stage.

Crypto security firm SlowMist estimates the total losses from the DEXX exploit at $30 million, making it the largest hack so far this month. Close behind is the $25.5 million breach of decentralized finance firm Thala Labs, which has also captured widespread attention.

Important Announcement

On November 15th 2024, Thala suffered a security breach as a result of an isolated vulnerability in the latest update to v1 farming contracts, allowing the exploiter to withdraw liquidity pool tokens totaling $25.5m.

We immediately paused all relevant…

— Thala (@ThalaLabs) November 16, 2024

While the losses from the DEXX hack remain unrecovered, Thala Labs managed to secure the return of its stolen assets in an unusual turn of events.

DEXX, which has yet to recover from the attack, joins a growing list of victims in a year that has seen billions in crypto losses.

For context, the crypto space has been plagued by phishing scams and breaches in recent months. In October, the anti-scam organization ScamSniffer reported that $20.2 million was stolen from 12,000 phishing victims.

🚨 ScamSniffer October Phishing Report
In October, approximately 12K victims lost $20.2 million to crypto phishing scams.

This marks a 56% decrease in stolen funds compared to September, while victim count increased by 20%.

🧵 [1/9] pic.twitter.com/s7yTffNQXu

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) November 5, 2024

Earlier in June, a Chinese trader lost $1 million in a phishing scam attack, while CoinGecko users were targetted by over 23,000 phishing emails.

A recent report has even highlighted the US, China, and the UK as leaders in crypto scams and failed projects. This rising trend is a stark reminder of the need for enhanced security measures within the digital asset industry.