QI Quadriga Initiative

Jul 2021 - DEXTools Token Minting - $1.2m (Global)

"Real-time data analysis at the tips of your fingers: Create unique trading strategies, anticipate market movements, search for big spreads, track and copy the most profitable wallets and much more."

"DEXT is a multifaceted, interactive trading tool that will be paramount in your trading success. Currently ending their beta, DEXT provides trading tools such as: DEXTboard, Pool Explorer, Pair Explorer, Big Swap Explorer, Token Catch, Spread Hunter, and various other functionality for a multitude of exchanges. This includes Uniswap and IDEX with tangible, working products. DEXT has the ability to integrate their tools to work with additional exchanges such as Mooniswap, Sushiswap, and Kucoin which are all coming soon. Due to how responsive the devs are, if the community wants other exchanges included, they are willing to include them too! Whether it’s a DEX or CEX, DEXTools has the ability to help navigate your trading experience."

"The DEX trading tool DEXTools (DEXT) tweeted that it was recently hacked and affected some DEXT holders. In this regard, the liquidity has been removed from Uniswap and Pancake and will be exchanged today (token swap). This should refer to the issuance of new tokens), the snapshot has been taken. DEXTools reminds users not to purchase DEXT tokens for the time being, and more detailed measures will be announced soon." "[T]he hacker was able to steal approx 4.8m dext at a total valuation 1.2m USD."

"Hi Community, recently we suffered a Hack and some $DEXT holders were affected, in order to guarantee the funds, we will proceed with a token swap today. A snapshot has been taken and the next steps will be shared soon. Please do not purchase $DEXT." "We removed the liquidity from both pools, Uniswap and Pancake. Wait for the new announcement before buying DEXT. Tokens purchased after the Snapshot won't be supported."

"In order to protect the community, the @DEXToolsApp team has preserved the liquidity pool by being able to drain it before the hacker had a chance to steal $1.2m." "A snapshot was taken prior to the liquidity preservation and a new token will be airdropped to existing holders."

"Please DO NOT BUY DEXT - if you've purchased after liquidity was pulled, we encourage you to sell and recover what capital you can as the tokens will not be honored."

"Hi $DEXT Community, the token swap was done as expected. All Holders already received their new $DEXT tokens and the new pool is set up and ready. Thanks to all the community for your patience and support." "Contract updated from 0x26ce25148832c04f3d7f26f32478a9fe55197166 to 0xfb7b4564402e5500db5bb6d63ae671302777c75a."

"The Chainswap bridge is resumed. Asset swaps and permissionless deployment are back online. We are preparing a post-mortem about the attack to our community and compensation plan will be in place soon."

Further Analysis

DexTools offers a suite of information services for crypto-asset investors. They fund the operation through a DEXT token. Unfortunately, the hacker appears to have been able to mint new tokens, and sold those for $1.2m.

How Could This Have Been Prevented?

As all affected users received an equivalent number of the new tokens, no assets were lost and only the token price was affected. This situation was most likely the result of additional tokens being minted or stolen from a treasury, which could have been prevented through the user of a proper multi-signature wallet, and further mitigated by proper cold storage.

More Cryptocurrency Exchange Hacks/Scams/Frauds

Helios Cash Runs Off > > < < ChainSwap ETH Exploit

Sources/Further Reading

SlowMist Hacked - SlowMist Zone (Dec 31)
DEXTools.io (Dec 31)
Dextools Summary (Dec 31)
@DEXToolsApp Twitter (Dec 31)
@DEXToolsApp Twitter (Dec 31)
@chain_swap Twitter (Dec 31)
Dextools Hacked!!!! : AidiFinanceOfficial (Dec 31)
DEXTools will issue new tokens due to hacking attacks. The snapshot has been completed. - CoinYuppie: Bitcoin, Ethereum,NFT, DeFi, Dogecoin, Crypto News (Dec 31)
DexTools News and Stories | CoinGecko (Dec 31)


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