CrediX Finance Team Vanishes After $4.5M Exploit Spawns Exit Scam Fears

The team behind the decentralized finance (DeFi) protocol CrediX Finance has seemingly vanished after a $4.5 million exploit drained funds from the platform, sparking suspicions of a potential exit scam [1]. On August 4, blockchain security firms identified the breach, which saw crypto assets worth $4.5 million siphoned from the platform. In response, CrediX Finance immediately paused its website to prevent further deposits [1].

According to blockchain security firm SlowMist, attackers had accessed the protocol’s multisig admin and bridge wallets six days prior to the exploit. They used this access to mint tokens that were then used as collateral to drain liquidity pools [1]. On Friday, the platform’s official X account went dark, and the website has remained offline since the exploit occurred. The company’s Telegram account has also disappeared, with no additional statements or updates provided [1].

In a now-inaccessible X post, CrediX Finance claimed on Tuesday that it had negotiated with the hacker, securing an agreement for the return of the stolen funds within two days in exchange for payments from the protocol’s treasury. The team further stated that it would reimburse all affected users through an airdrop [1]. However, the company has since gone silent, deleting all of its official communication channels, raising questions about the credibility of these claims [1].

Decentralized autonomous organization Stability DAO announced that it is preparing a formal legal report in collaboration with affected projects such as Sonic Labs, Euler, Beets, and Trevee (formerly Rings Protocol). The group aims to work with authorities to trace and recover the stolen funds. “Our teams are collaborating to gather all evidence, trace the funds, and coordinate with relevant legal and cybercrime units,” Stability DAO stated [1].

The DAO also confirmed that it obtained KYC information for two members of the CrediX Finance team, which will be included in the legal report. Meanwhile, Trevee, previously known as Rings Protocol, revealed that the hack had indirectly impacted it through a $1.6 million scUSD loan to Stability’s metaUSD. This exposure became fully linked to CrediX after a liquidity crisis, prompting Trevee to reduce its exposure to over $700,000 and pause the minting of its stkscUSD asset [1].

The incident adds to a growing trend of DeFi exploits, with off-chain attack vectors accounting for a significant portion of losses in the industry [1]. The sudden disappearance of CrediX’s team and its failure to follow through on promises of reimbursement have further fueled concerns about transparency and accountability in the fast-moving DeFi space. As investigations continue, users and partners are left in limbo, awaiting clarity on how the situation will be resolved.

Source: [1] CrediX Finance team disappears after $4.5M hack (https://coinmarketcap.com/community/articles/6895f5f39a14c16682dc53de/)