DEXX Founder Addresses Theft Responsibility

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.

Key Takeaways

• DEXX experienced a major security breach, with over $21 million stolen.
• The founder admitted mismanagement in security as the primary cause of the theft.
• A compensation plan is in development, with a focus on transparency and user verification.

Incident Overview

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.

Founder’s Admission of Responsibility

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:

• "Our mistakes led to the leakage of private keys, and the responsibility lies entirely with us."

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.

Investigation Progress

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:

• "The investigation process is very complex, involving significant time and resource costs."

Compensation Plan Details

On December 6, DEXX announced a compensation plan aimed at addressing the losses incurred by users. The plan includes:

1. User Confirmation of Damaged Amount: Users will verify their losses through a dedicated platform entrance.
2. Compensation Based on Debt Records: Confirmed amounts will serve as the basis for compensation once institutional funds are secured.
3. Clarification of Debt Structure: The compensation process will be conducted in stages, ensuring transparency and accuracy.

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.

Rebuilding Trust

Recognizing the significant impact of the incident on user trust, Roy outlined several strategies to regain confidence in the DEXX platform:

• Transparency in Compensation: Ensuring users are informed about the compensation process and progress.
• Security Upgrades: Engaging top security firms to conduct thorough assessments and implement improvements.
• Brand Credibility: Partnering with reputable exchanges and financial institutions to enhance trust.
• User Communication: Establishing efficient channels for user feedback and support.

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.

Sources

• Exclusive Interview with DEXX Founder: The Responsibility for the Theft Lies Entirely with Us, Compensation Platform Entrance is About to Launch - ChainCatcher, ChainCatcher.
• Exclusive interview with DEXX founder: The theft is entirely our responsibility, and the compensation platform entrance will be launched soon-web3资讯-ODAILY, ODAILY.