MEME Black Swan: on-chain exchange DEXX was hacked

Source: Dao Shuo Blockchain

The most sensational thing in the circle these days is probably the DEXX incident.

I don’t know much about this platform, I just saw a lot of people on Twitter fighting for their rights, so I looked up some relevant reports online and learned about the gameplay of this platform.

This is a platform similar to a robot trading, and the main trading objects on the platform are various meme coins. The platform uses robots to enable users to automatically trade tokens for profit.

Although I have not participated in this platform, I have tried similar gameplay - participating in a trading robot on TON before.

When I click on this robot, it prompts me to give it the Private Key of the account, and then it can help me with automatic trading.

As soon as it asked me for Private Key, I immediately closed this robot and never followed any similar applications again.

The reason I turned it off is simple: I won’t participate in any application that requires me to surrender my Private Key, no matter how tempting it is.

According to the information currently compared by longer, the assets stolen from users in this incident amounted to tens of millions or even hundreds of millions of dollars.

Although the truth of the incident is still under further investigation, more and more details being exposed allow us to see the issues reflected by the incident:

Security issues caused by centralized custody of Private Key.

Asset security issues in encryption are almost a recurring topic in the ecosystem. Such security incidents occur at least once a year.

The basic reasons for the incident are nothing more than the following three points:

• With high returns as bait

• User exposed Private Key

• Poor management of Private Key.

In many security incidents, their manifestations are not the same. They appear in new ways every time, but upon careful examination, they are essentially the same.

In the DEX event, the referrers who participate in the recommendation can receive high commissions, the benefits of platform promotion are very attractive, the players participating in the platform need to provide their own Private Key, and the platform’s management of their Private Key is centralized.

All these problems have occurred.

For such applications, there will always be players who harbor such a lucky mentality:

I only put a little money in to play, and when I make money, I will stop and safely withdraw.

This idea is beautiful, but when it comes to actual implementation, most people cannot control themselves.

Even if it starts with a small amount of money, once you get a high return, you won’t want to stop, let alone withdraw. At this point, the heart will swell, only wanting to use more money to seek greater returns, and all the precautions set in advance will be removed one by one in the mind.

Therefore, once the final accident happens, the losses incurred by users will definitely be huge amounts.

In this incident, the amount of losses suffered by users who participated in online rights protection and exposed losses was not small.

Many users also mentioned that they have reported to the public security organs and made a record.

In our country, transactions related to encryption assets are very sensitive issues, which are themselves a relatively gray area in law. In this case, it is difficult to say how the public security organs will handle such cases, and even if they do, it may involve other troubles.

So for retail investors like us, the only ones who can truly protect our own interests in this field are ourselves.

We must take the security of our assets into our own hands and not delegate it to others.

Moreover, isn’t the original intention of the birth of blockchain technology to hope that each user can control their own Private Key and firmly grasp their own assets?

I think similar events will happen in the future, and users will suffer losses every time such events occur. If it can be understood that new users entering this field are unlucky due to lack of experience, old users who have been in this field for several years and still fall victim should reflect on themselves deeply.

I always believe that security is always the top priority in the encryption ecosystem. Any tempting benefits are just like a reflection in the water or a flower in the mirror if security cannot be guaranteed.