OKX DEX suffers $2.7M exploit after proxy admin contract upgrade

OKX decentralized exchange (DEX) suffered a $2.7 million hack on Dec. 13 after the private key of the proxy admin owner was reported to be leaked. 

On Dec. 13, the blockchain security firm SlowMist Zone posted on X (formerly Twitter) that OKX DEX “encountered an issue.” According to the report, the issue began on Dec. 12, 2023, at approximately 10:23 pm after the proxy admin owner upgraded the DEX proxy contract to a new implementation contract and the user began to steal tokens.

Then, at approximately 11:53 pm, the proxy admin owner made another upgrade to the contract, and the user continued to exploit tokens. SlowMist’s analysis at the time said the attack “maybe” the result of the key of the proxy admin owner being leaked.

The DEX proxy was subsequently removed from the platform’s trusted list.

Scopescan, an on-chain analysis firm, also reported the attack, saying users were reporting the event. It reported that after contacting the DEX, it was told that an old abandoned contract was attacked but has been located and stopped. 

Additionally the OKX DEX said any user losses affected by the hack will be “fully borne.”

Related: Aerodrome and Velodrome DeFi platforms experience front-end hacks

According to a post from the blockchain security company PeckShield, the total loss of the OKX DEX attack was around $2.7 million in various cryptocurrencies. PeckShield advised users to “please revoke allowances” if there are any. 

In light of the hack, one X user posted a reminder that just because something is “decentralized” doesn’t mean that assets are necessarily safe: 

Until September 2023, research shows that the crypto industry has suffered $1.5 billion in losses due to hacks, exploits and scams this year.

In the fourth quarter so far, Poloniex has faced an exploit resulting in over $100 million in digital asset losses, and the HECO Chain bridge hack cost more than $80 million in losses.

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