Decentralized Exchange DYdX Faces $9 Million Loss in Targeted Attack

Decentralized exchange dYdX had to utilize its insurance fund to cover losses amounting to $9 million resulting from a "targeted attack" on November 17. Specifically, this attack targeted long positions in Yearn.Finance (YFI) tokens, resulting in the liquidation of positions worth nearly $38 million. The sudden drop in the price of YFI, which had previously surged by over 170%, raised concerns within the crypto community about a potential exit scam. dYdX founder Antonio Juliano stated that the losses suffered by the exchange and the decline in YFI were due to market manipulation. However, Juliano reassured users that their funds were unaffected and that the insurance fund still holds approximately $13.5 million. He also mentioned the plans for a comprehensive review of risk parameters and potential adjustments to the exchange's software. Some users speculated that a potential insider job was involved in the YFI market, given that 50% of the token supply was allegedly held in 10 wallets controlled by developers. However, data from Etherscan suggests that some of these wallets are associated with crypto exchanges. Read more AI-generated news on: https://app.chaingpt.org/news