OKX DEX Suffers $424,000 Exploit

Vignesh Karunanidhi
OKX DEX Suffers $424,000 Exploit

In a recent security incident, OKX DEX has fallen prey to an exploit on its decentralized exchange (DEX) contracts. The exploit resulted in the loss of over $424,000 in user funds. The exchange has deactivated the affected contracts and is set to compensate impacted users.

Chinese journalist Colin Wu reported that several wallet addresses authorized on OKX DEX were drained during the exploit, with the stolen funds traced to an address holding the funds exceeding $424,000.

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OKX hacker targeted 18 addresses

OKX’s incident report revealed that the hack targeted a market maker contract facilitating DEX trading, allowing the attacker to steal from 18 addresses that had approved the contract for token trading. Despite the breach, OKX assured users that the majority of assets remain secure.

Blockchain security firm SlowMist, covering the incident, attributed the breach to a leaked private key for OKX’s proxy admin account. This compromised admin account enabled the attacker to upgrade the DEX’s proxy contract to a malicious version, directly draining user funds. The proxy admin continued upgrading the contract after the initial theft to persist in stealing additional tokens.

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OKX acted promptly by removing the corrupted proxy contract from DEX’s trusted permission list. The exchange also committed to compensating all affected users, conducting a security audit, and reorganizing abandoned contracts to prevent future vulnerabilities.