What Caused The Loss of 53 Million APX Tokens?

ApolloX (APX), a decentralized cryptocurrency exchange, was purportedly hacked on June 8, with the platform stating that the hacker discovered a vulnerability in the platform’s Trading Rewards Contract.

According to ApolloX, the rogue actor obtained 255 signatures, allowing him to take 53 million APX tokens from the Withdrawal Contract.

The stolen tokens were worth close to $2.1 million at the time of the attack. According to Coincu data, ApolloX was down more than 11% in the previous 24 hours at the time of writing.

However, none of the losses are connected to any user money.

However, due to a flaw in the exchange smart contract, the “ApolloX team also made an emergency repurchase of 12,748,585 APX tokens” worth $600,000 after the attack. The platform also said that “lost tokens will be made up for through APX earned from exchange trading fees.”

The event occurred shortly after ApolloX announced seed funding from investors such as Binance Labs and Kronos Research. The DEX has received an undisclosed amount of strategic investment in order to expand further into the Web3 area.

“Decentralized finance increasingly eats into the market share of centralized finance,” said ApolloX Captain and Founder. In this competitive space, protocols are rapidly innovating as users demand more control, value, and accessibility.”

However, ApolloX believes that the ‘future of DAO will help to eliminate centralized leadership and empower the next generation of protocols.’

Meanwhile, on DeFiLlama, the exchange has a Total Value Locked (TVL) of $12.4 million. According to InvestorsObserver, ApolloX could sustain a poor short-term technical score of 4 due to “recent price movement suggesting more bearish signals for traders.”

According to a recently released report by the Federal Trade Commission (FTC), over 46,000 people have lost more than a billion dollars in cryptocurrency to scammers since the beginning of 2021.

Meanwhile, the Australian Competition and Consumer Commission (ACCC) said that between January 1 and May 1, 2022, Australians lost more than AUD 113 million, or $81.5 million, to crypto-related frauds.

Anne Boden, the CEO of Goldman Sachs-backed digital bank Starling, described cryptocurrency as “hazardous.” “A lot of [crypto] wallets are being connected directly to payment schemes,” Boden remarked. This is a threat to the safety of our payment schemes around the world.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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