Cryptocurrency exchange Okx suffered a security breach this week resulting in $2.7 million stolen from its decentralized exchange platform. The hack occurred after the proxy admin upgraded a deprecated smart contract which the attacker then exploited to drain funds.
Keypoints
- Okx’s decentralized exchange (DEX) suffered a hack resulting in $2.7 million in stolen funds
- The hack exploited a deprecated smart contract after the proxy admin owner upgraded contracts
- The attacker is suspected to be tied to previous exploits like the Lunafi, Uno Re, and RVLT hacks
- Okx has taken measures to secure user funds, revoke contract permissions, and track the stolen assets
- This hack follows recent exploits of crypto platforms like HTX, Poloniex, Aerodrome, and Velodrome
Multiple blockchain analytics firms reported on December 13th that Okx’s DEX protocol had fallen victim to an exploit. Onchain intelligence company Arkham soon after announced they had funded a bounty to help identify the perpetrator behind the attack.
“Okx Dex was exploited by a hacker who upgraded a deprecated contract with token approvals, resulting in losses of over $2.7M on Dec 13, 2023,” Arkham wrote on social media. They believe the attacker has ties to previous DeFi protocol hacks.
New Intel Exchange Bounty: OKX DEX Exploit
We’ve created and funded a bounty to help identify the person or organization behind the recent OKX DEX exploit.
OKX DEX was exploited by a hacker who upgraded a deprecated contract with token approvals, resulting in losses of over… https://t.co/kakhpb05NV pic.twitter.com/k5ztEm51bW
— Arkham (@ArkhamIntel) December 13, 2023
Okx later confirmed via Twitter that a discontinued smart contract on its DEX platform was compromised. This enabled the hacker to gain elevated permissions and steal tokens before Okx could revoke access and secure funds.
While Okx said it is working with authorities to track and reimburse stolen assets, affected users still reported financial damages. “My money lost $750 on your web,” one DEX trader replied.
The breach comes during a surge in hacks on decentralized finance protocols and centralized crypto exchanges in recent months. Major platforms like HTX, Poloniex, Aerodrome, and Velodrome have also fallen victim to cyber attacks resulting in nine-figure losses.
Experts advise crypto traders utilize hardware wallets and carefully manage token approvals when interacting with DeFi apps to reduce attack surfaces. But ultimately, the Okx DEX breach exemplifies that even decentralized platforms carry security risks if not developed defensively.
