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Protocol bug costs FTX 81 ETH

A bug in FTX's exchange protocol allowed a hacker to mine and sell about 100 million XEN tokens for free.

By Mike Hesp
• 2 min read
Protocol bug costs FTX 81 ETH

A bug in the FTX exchange protocol allowed a hacker to mine and sell about 100 million XEN tokens for free.

Through a loophole in the FTX exchange, an as-yet-unknown attacker mined and sold 100 million XEN tokens. This comes from a report from X-explore. According to the report, the hacker created 17,000 new XEN tokens at no cost. The Bahamas-based exchange had to cover the exorbitant gas fees.

As a result, later appeared "the same abnormal debits of small amounts in FTX's hot wallet". So far, 81 ETH have been stolen from the wallet.

The attack investigation found that a flaw in the platform's functionality enabled the compromise. The XEN token is now responsible for about 8.48 percent of Ethereum's transaction fees in the last 24 hours, according to Etherscan.

The price was down by almost 50 percent over the day. The FTX attack comes days after the Binance Smart Chain bridge hack. Read here. DeFi Spaces also saw similar incidents. Derivatives platform Mango Markets recovered $100 million. TempleDAO was the victim of an Ether exploit.

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