DEXX promises to compensate users for losses resulting from the $21 million hack.

by
Alyssa Davidson

Posted: December 6, 2024 10:36 AM Updated: December 6, 2024 10:36 AM

by well

Correction and fact check date: December 6, 2024, 10:36 AM

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Memecoin trading platform DEXX has announced that it takes full responsibility for the recent hack that resulted in the loss of user funds and promises to compensate all affected users.

In a recent post on social media platform X, DEXX emphasized that despite the incident, the team remains intact and continues to work diligently. The investigation is ongoing and users were assured that efforts to protect DEXX and its assets have not been overlooked.

The platform emphasized that it had carefully planned its timeline of events following the breach and a comprehensive security plan developed by its technology team. The platform also set a deadline for the compensation process and finalized the compensation strategy.

As part of its compensation plan, DEXX outlined several key actions: The platform is developing a rewards module that will include features to guide high-risk wallet activities, and these features are currently being tested. DEXX is also continuing to monitor hacker-controlled wallets in an effort to recover assets and provide immediate compensation to affected users. The platform also plans to allocate 80% of its daily revenue to user rewards, with the remaining 20% ​​set aside for operating expenses.

To further support affected users, DEXX will convert debt to equity based on platform valuation. The team is actively seeking funding to fund the compensation process and will develop dedicated plans if successful. Lastly, the platform will distribute token airdrops as additional compensation to those affected by the incident.

DEXX said it will continue to protect its platform and compensate those affected, reiterating its commitment to its users.

$21M DEXX Hack Affects Over 12,000 Solana Wallets

On November 16, DEXX fell victim to a security attack that resulted in the loss of over 12,000 unique users. According to MistTrack, private key breaches resulted in the majority of victims losing less than $10,000, although one user experienced losses exceeding $1 million. Total reported losses from the incident were initially estimated at $21 million, making it the second-largest hacking incident of November. The platform confirmed that 32,000 SOL, 634 ETH and 204 BNB were stolen, among other assets.

In response to the attack, DEXX issued a statement on social media confirming that it was actively monitoring the hackers’ wallets and was taking steps to freeze the stolen funds. The platform also offered bug bounties and token rewards for returning stolen assets within 24 hours. A similar request was made on November 23rd. DEXX worked with SlowMist and law enforcement to investigate the incident.