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body { font-family: Arial, sans-serif; } h1 { text-align: center; } p { text-align: justify; } OpenLeverage: Navigating the Aftermath of a Cyber-Attack OpenLeverage, a decentralized exchange (DEX), recently fell victim to a cyber-attack resulting in a loss of $236,0...
OpenLeverage: Navigating the Aftermath of a Cyber-Attack
OpenLeverage, a decentralized exchange (DEX), recently fell victim to a cyber-attack resulting in a loss of $236,000. The exploit predominantly affected its operations on BNB Chain and Arbitrum, prompting the platform to pause its protocol for a thorough investigation.
Despite the financial safety net provided by in-protocol insurance and buyback funds, OpenLeverage has decided to shut down its trading and lending services. The platform is currently setting up mechanisms for users to safely close trades, borrowings, and withdraw funds, with all protocol actions on hold until withdrawal processes begin. Additionally, OpenLeverage has offered the hacker a bounty to return the stolen funds and will commence tracing and legal actions against the perpetrator.
This incident underscores the vulnerabilities faced by decentralized crypto exchanges and the critical importance of robust security measures and emergency protocols to safeguard user assets.
OpenLeverage disclosed that the exploit predominantly affected its operations on BNB Chain and Arbitrum, with approximately $220,000 and $40,000 lost, respectively. However, the platform reassured its users that it would not compromise personal funds. "The recent exploit caused a loss… thankfully, our in-protocol insurance, OLE buyback fund, and protocol reserves will cover all protocol losses," OpenLeverage announced.
Despite the financial safety net provided by the accumulated insurance and buyback funds, OpenLeverage has decided to shut down its trading and lending services. The firm is currently setting up mechanisms for users to close their trades, borrowings, and withdraw funds safely. It will keep all protocol actions on hold until it initiates the withdrawal processes, which are expected to begin early next week.
In addition to rectifying the current situation, OpenLeverage offers the hacker a bounty to return the stolen funds. It also announced that tracing and legal actions against the perpetrator will commence immediately. This incident reflects the vulnerabilities faced by decentralized crypto exchanges and the importance of robust security measures and emergency protocols to safeguard user assets.
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