Around noon on December 3, Xinfin supporters began witnessing abnormality in the XDCE (Xinfin token on Ethereum) trades on decentralized exchanges. There were massive sell orders that caused the prizes to plunge and dip. There was around 280 Million sell order on IDEX. This made many curious and began to sort clarifications. However, after a few hours, Alphaex.net announced that its hot wallets had been compromised. Alphaex.net has been a major supporter of the Xinfin network, it was the first exchange to offer XDCE-XDC swap.
The hacker gained control of Alphaex’s USDC, USDT, and ETH hot wallets. Also, the hacker gained control over the XDCE wallet that was used to provide liquidity for XDC (mainnet coin) swap. The hacker was cautious not to use any centralized exchange for ease of tracking and freezing funds. Also, most centralized exchanges where Xinfin network tokens are traded have switched to the main net coin.
The good news is that no user account on Alphaex.net was compromised, neither was their funds. Most of the funds the exchange holds are safe in the cold wallets, so the community members should not be afraid. Xinfin’s main net is not affected by this attack as the prices are normal according to Coinmarketcap.
To remedy the situation, Alphaex had withdrawn liquidity on all Dexes and advised all community members not to add liquidity to XDCE pairs until the situation is completely solved.
“The team immediately blocked liquidity at DEX like Bancor, IDEX where XDCE is traded in larger volumes. We are Requesting XDC community not to add any liquidity with various DEX since no swap will be available to XDC for such swap related to a compromise account.”
The team also warned community members to halt all XDCE tradings on all DEXES as XDCE tokens bought will become useless eventually. Holders of the stolen funds will not be able to swap them for XDC main net coins. The exchange team is working to block all trades on other exchanges where the stolen funds were sent.
Ritesh Kakkad, Xinfin Co-founder also stated in a tweet:
“@XinFin_Official community member please be safe and avoid trade at various DEX like bancor, idex and uniswap until @AlphaExNet block compromises Account from various exchanges. It’s for $XDCe #ERC20 swap token.”
Many community members have remained very calm, optimistic about the situation, and helped to orientate others who might be afraid. Most huge networks have faced situations like this and it did not in any way defined their success. Cases like these are only pointers to the fact that the main net is secure and is gaining a lot of attention for the milestones it crossed.
Members of the community should protect their private keys at all times and stay away from trading XDCE on the aforementioned decentralized exchanges for the time being.
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