Clipper DEX Investigates Hack That Drained 6% of Its TVL
The post Clipper DEX Investigates Hack That Drained 6% of Its TVL appeared on BitcoinEthereumNews.com.
Clipper DEX and Spectral Labs both recently faced serious hacks which exploited protocol vulnerabilities, and added to the $1.48 billion in crypto losses reported for 2024. Similarly, the DEXX trading terminal suffered a $30 million breach. DEXX is working on recovering the stolen funds alongside law enforcement. Thanks to these crimes, regulatory scrutiny also intensified. The SEC filed a lawsuit against Touzi Capital for misleading investors about its crypto mining fund. On the other hand, some industry leaders expect a potential shift in regulatory enforcement under the new Trump administration. Clipper DEX Denies Private Key Leak Decentralized exchange (DEX) Clipper confirmed that the recent $450,000 hack of its protocol was due to a vulnerability in its withdrawal function. The DEX also dismissed earlier claims that the breach stemmed from a private key leak. The attack took place on Dec. 1, and targeted two liquidity pools. The hack resulted in the loss of about 6% of the protocol’s total value locked. Clipper assured its users that other pools remained unaffected and that the exploit was contained. In a statement on X, Clipper clarified that the ability to withdraw funds in a single token, a feature involving a bundled swap and deposit/withdrawal transaction, appeared to be the source of the exploit. This feature has since been disabled. Security firm Fuzzland’s co-founder, Chaofan Shou, previously speculated on X that the hack could be linked to an API vulnerability that allows unauthorized signing of deposit and withdrawal requests. Clipper, however, held firm that its design and security architecture ruled out a private key leak. The protocol paused swaps and deposits while keeping withdrawals open, albeit requiring a mix of assets from the pool. Clipper is actively tracing the stolen funds and reached out to the attacker to encourage them to contact the team. Crypto…
Filed under: News - @ December 2, 2024 2:22 pm