Meme Community Hit by "Rug Pull," DEX Loss Estimated at Over Ten Million

Original Article Title: "Retrospect on DEXX User Funds Large-Scale Theft Incident, On-Chain Security is Serious Business"

Original Source: Odaily Planet Daily

This morning, as various major meme community members, who were supposed to finish a night of busy "rug-pulling" work, were suddenly stirred up by a piece of news. The on-chain trading terminal DEXX fell victim to an attack, with multiple users confirming that their funds were transferred. This attack involved multiple chains, with a wide variety of assets being transferred, leading to a swift and massive sell-off of multiple meme coins.

Dexx is a cross-chain Memecoin trading platform that supports assets on SOL, ETH, TRX, BASE, BSC, and other chains. It mainly promotes features such as on-chain moving stop-loss, hot concept push, smart wallet tracking push, doubling out of the original investment, one-click anti-sandwich, one-click follow buy and sell, and more.

Regarding the DEXX user funds theft incident, SlowMist founder Wu Xing posted on X Platform, stating that the victims were related to using DEXX for rug pulling or MEME trading, and the private keys belonged to DEXX's centralized custody, which were definitely leaked. The details of the leak are yet to be disclosed. For a moment, there was a chorus of curses from various major meme communities:

"Woken up in the middle of the night to find $20,000 stolen from DEXX, the hard-earned results of a month's effort gone in vain, will never touch this kind of centralized wallet again";

"Speechless, just registered and transferred 100 SOL coins in, only to be stolen. No wonder so many KOLs recommend it";

"I've sold off all my Meme coins, this time many wallets were hacked, when hackers steal coins, they will dump the price, after the fermentation, all memes could be dumped, causing a crash";

......

Large Number of Victims, Substantial Amount

Due to the large number of users affected by this theft, a "Rights Protection Group" was promptly established, and began registering the stolen information. The following image shows the stolen fund records situation (as it was self-reported by the victims, only some data has been confirmed to be true). Meanwhile, SlowMist founder Wu Xing also stated: "According to the data submitted by community users, we calculated that the losses from the DEXX theft amount to millions of dollars, with these funds currently scattered across multiple hacker addresses."

Other community users have also calculated a total amount exceeding tens of millions of dollars. Since a complete tally of addresses has not yet been done, the exact stolen amount cannot be definitively determined at this time. However, based on the feedback from community users, it is evident that many users have had tens of thousands, hundreds of thousands, or even millions stolen.

Partial screenshot of user-reported stolen information in the DEXX Rights Protection Group (names blurred out)

DEXX Official Response: Not a RUG, Accusations of Insider Theft Abound

Following the theft incident, the DEXX Chinese official team posted a response on Platform X, stating: "DEXX has currently taken notice of the token withdrawal issue reported by multiple users. Several professional security audit teams have started to analyze and investigate the issue. The team is actively working on a solution, and there is no Rug. Any further developments will be promptly communicated to everyone through in-app notifications and X/Telegram channels."

DEXX Chinese Official Responds to User Mass Theft Incident

Personal information of DEXX founder has also been exposed. DEXX founder Roy (@honza 204) later responded to the theft incident, saying, "Will compensate, isolated some users, no RUG, investigating, unable to reply to each one individually, rest assured."

DEXX Founder Responds to User Mass Theft Incident

However, this response has not progressed further, and users are not buying it, raising doubts that DEXX intentionally exit-scammed or engaged in insider theft.

DEXX rose to fame during this round of the meme trend, relying heavily on KOL promotions to quickly acquire users. According to KOLs who spoke to Odaily, the current Bot was used to rapidly onboard users, offering extremely high rebates, with the highest even reaching 50%-60% of the transaction fee. In the current environment dominated by memecoins, such income is quite substantial.

After the DEXX incident, many KOLs who had previously aggressively promoted DEXX as the "Binance on chain" quickly deleted their posts and distanced themselves. One of the most criticized personalities was the X KOL Youmin 8341, who had previously flaunted the high rebates.

Following the incident, Youmin quickly tweeted at DEXX founder, stating that they had never withdrawn their rebate, leading netizens to mockingly comment, "Two sticks break brotherly love, the transcript is full of brothers' names."

Safety Recommendations

Meme undoubtedly represents one of the most lucrative opportunities in this bull market, and engaging in on-chain operations and using various bots has become a daily habit for users. The recent "DEXX Attack: User Funds Stolen" incident should serve as a wake-up call for the industry. To avoid similar events where one's hard-earned crypto ends up benefiting hackers, Odaily Star Daily has compiled some security recommendations. It is essential for everyone to be extremely cautious about the security of their on-chain assets:

-Do not trust others' recommendations easily, research the product mechanism thoroughly, and consider using a BOT that does not store the private key on a server;

-Choose a BOT with a longer operating time, a strong team, and no security incident record;

-Do not click on any unfamiliar links in the TG group and do not reply to any private messages;

-Regardless of the tool used, after completing a large fund transaction, it is recommended to withdraw and transfer the funds to a self-hosted wallet;

......

Previously, incidents of theft occurred with Bnanagun, Unibot, and others, and DEXs will not be the last.

Remember, as you navigate the dark forest of Web3, only those who survive until tomorrow will have a chance.

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