$62 000 USD
DESCRIPTION OF EVENTS
"NewDex is a decentralized exchange based on EOS blockchain." "Newdex was launched on the EOS on August 8, 2018. It is the leading order-book decentralized Exchange for on-chain matching and settlement in the entire net. Newdex has reached cooperation with more than 20 digital coin wallets (TokenPocket, imToken, Bitpie etc.) to perfectly present the decentralized transaction experience “matching via smart contract and receiving assets while transaction completed”. On January 19, 2021, Newdex has completed the new upgrade, from an order-book decentralized Exchange to an aggregate decentralized Exchange, and has successfully aggregated the depth of Newdex's limit orders and the depth of liquidity pools of the major Swaps on the EOS (Defibox, Defis Network, etc.), allowing EOS users to obtain the best depth and best price trading experience, which has become the first trading entry in the EOS ecosystem."
"Newdex is committed to taking advantage of the composability of DeFi to aggregate the depth of DEX in multiple chains, develop the aggregated DEX with "best depth, best price and best experience", provide users with good decentralized trading experience, and become multi-chain DEX trading entry."
"[A]t 2 o'clock in the afternoon, EOS contract account oo1122334455 issued a token named "EOS", and allocated one billion fake EOS tokens to EOS accounts in full dapphub12345, and then transfer the fake tokens to the account iambillgates (the account that carried out the attack) from this account. After the attacking account used a small fake EOS to verify the attack, a large-scale attack was carried out from 14:31:34 to 14:45:41. There were 11,800 fake EOS listing orders to buy BLACK, IQ, and ADD, and all of them were traded."
"The hackers created a new EOS-based token, also named “EOS,” and used it to illegitimately purchase BLACK, IQ, and ADD tokens from exchange service Newdex. The company has since confirmed the hack."
"The fact NewDex does not verify tokens via its smart contracts leads one to the conclusion that NewDex is just a user account handling the users’ trades and traders are under the impression it’s a decentralized exchange!"
"Further investigation on NewDex infrastructure revealed that Newdex doesn’t use smart contracts to verify the tokens users send." "[T]he fake EOS tokens were exchanged for real ones that were transferred to Bitfinex. The hackers managed to transfer 4,028 tokens three times, worth around $19,450 at current values. The total lost funds by the exchange’s users are estimated around $58,000. The exchange took responsibility for the incident and the entire loss and had fixed the issue and resumed normal transactions again."
“The Newdex team took responsibility for the entire loss and had fixed the problem in the first place and resumed normal transaction. All Newdex users, please don’t worry and use it at ease”.
The NewDex exchange platform was exploited through a fake EOS attack, which created 11,803 counterfeit EOS and used them to trade other tokens. The Newdex platform took responsibility and covered the loss.
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