DeFi
Crypto Security Breach: DeFi Exchange dYdX Hacked Following Selloff Rumors
- dYdX has suffered a breach, urging users not to interact with its website.
- The DYDX token fell more than 4% after the recent breach, reflecting market concerns.
On July 23, decentralized perpetual exchange dYdX announced via social media that it had suffered a security breach.
This incident occurred shortly after Bloomberg It has been reported that dYdX v3 is going on sale.
What happened?
Issuing a warning to its users and the broader crypto community, dYdX shared the news on Xalerting everyone of the potential risk and stating:
“Please do not visit the website or click on any links until further notice. An update will be provided as soon as it becomes available.”
To reassure users, the dYdX team has confirmed that version 4.0 on Cosmos is secure and continues to work without any issues.
“This message is not about dYdX v4.”
Should users be concerned?
Notably, despite the reported compromise, dYdX v3 smart contracts remain secure and unchanged.
However, as a precautionary measure, users are advised not to withdraw funds or interact with the dydx.exchange website until new updates are provided to avoid any potential issues or exploitation.
Source: dYdX/X
Concerned about the situation, people involved in the exchange commented,
“Are the funds at least safe?”
Similar incidents
In fact, recently, WazirXIndia’s largest cryptocurrency exchange, also experienced a major hacking incident. The exchange revealed that a security breach allowed hackers to steal over $230 million worth of digital assets.
These incidents highlight that the growth of the cryptocurrency industry comes with its share of challenges. Furthermore, they are also a stark reminder of the critical importance of cybersecurity in the cryptocurrency world.
Impact on the token
Following the incident, dYdX’s governance token, ethDYDX, has seen a drop of more than 4% in the past 24 hours, according to CoinGecko.
Additionally, user X Carlitos highlighted that the price of $DYDX is expected to fall below its previous all-time low on the weekly chart.
Adding to the fray, Nick Cote, co-founder and CEO of Second Lane, offered a concise summary of the situation when he said:
Source: Nick Cote/X