DEXX founder Roy addresses the recent theft of over $21 million, taking full responsibility and outlining compensation plans and security improvements.
On November 16, the trading platform DEXX faced a significant security breach, resulting in the theft of over $21 million in user funds. Nearly 1,000 victims were affected, leading to widespread concern about the platform's security measures and the trustworthiness of the Web3 industry. In a recent interview, DEXX founder Roy addressed the incident, taking full responsibility and outlining the steps being taken to compensate victims and improve security.
The DEXX platform was compromised due to a technical vulnerability that allowed hackers to exploit its security measures. The incident not only caused financial losses for users but also raised questions about the platform's reliability and the broader implications for the Web3 ecosystem. Following the breach, the DEXX team faced criticism for their delayed response and lack of communication with affected users.
In his interview, Roy emphasized that the responsibility for the theft lies entirely with the DEXX team. He clarified that the issue was not with the private key management solution but rather with the team's security management practices. He stated:
Roy also addressed allegations from users suggesting that the theft might have been an inside job, asserting that there was no motive for the team to compromise the platform's future.
Roy provided updates on the ongoing investigation into the theft, revealing that suspects have been identified. However, he noted that the investigation is complex and requires careful handling to avoid jeopardizing law enforcement efforts. He stated:
On December 6, DEXX announced a compensation plan aimed at addressing the losses incurred by users. The plan includes:
Roy acknowledged that the initial communication regarding the compensation plan was delayed, attributing it to external factors and the need for careful negotiation with institutional partners.
Recognizing the significant impact of the incident on user trust, Roy outlined several strategies to regain confidence in the DEXX platform:
Roy concluded by emphasizing the importance of user trust, stating that the platform aims to provide not just security technology but also a reliable support system for its users.
As DEXX navigates this challenging period, the focus remains on rectifying past mistakes and ensuring a secure trading environment for all users.
