On November 30, a hacker or group of hackers exploited a vulnerability in the off-chain part of Dexsport protocol related to the case-sensitive recording of unique transaction identifiers for processing deposits. The unknown intruder managed to withdraw 378,000 BUSD from the liquidity reserve of the protocol and all user funds were safe and not affected.
Despite the severity of the exploit, the workflow on the platform was disrupted only for a few hours. The platform became fully operational before the start of matches and many users didn’t even notice any changes or delays in transactions.
2022 is a hard year for the crypto industry. In addition to the protracted Bear market, there are a lot of hacker attacks that many companies cannot cope with and leave the market. Only in November, over 391,6 million dollars were stolen and due to the automatic security system Dexsport losses are counted only 0,001 of the sum.
Several large media have even written investigations of our hacker attack case as it is considered to be a great example of fast reaction and elimination of the problem.
It’s important to say once again that users’ funds were safe and just couldn’t be stolen due to the high level of protection mechanisms. We know that, in a trustless environment, the reputation is one of the main treasures, especially in a bear market. Therefore, we pay maximum attention to the high level of user experience and safety of user funds.
We are thankful to our community for the belief and support! It has been a hard day for our project and we are happy that we have coped with it well, without losing a single user and customer loyalty.