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DEX Merlin hacked just days after security audit from CertiK

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TL;DR

  • DEX Merlin, operating on zkSync, suffered a significant security breach, resulting in a loss of over $1.8 million in funds.
  • The breach occurred shortly after the release of DEX Merlin, despite having an audit done by CertiK.
  • CertiK has identified the primary cause of the hack as a private key management issue.

The DEX Merlin, which operates on zkSync, a Layer 2 scaling solution for Ethereum, suffered a significant setback when a hacker successfully breached its security measures. As a result, the hacker was able to steal more than $1.82 million in funds and subsequently drained the LP (liquidity pool).

According to various blockchain security experts, the exchange has fallen victim to a coordinated attack by hackers who managed to steal significant digital assets. Reports suggest that the perpetrators could extract a total of $1,823,477 from Merlin’s Core Farming Pools, which were held in USD Coins (USDC), TAROT, and Ethereum (ETH) coins.

This breach of DEX Merlin occurred shortly after its release. Even though DEX Merlin had an audit done by blockchain security firm CertiK to reassure potential investors, hackers managed to access the network a few days later.

According to the reports, the cyber cartel linked all the stolen assets to the Ethereum blockchain network.

Merlin recently announced they would hold a three-day public sale of their coveted mage tokens. Even more enticing is that there’s no hard cap in place, allowing investors to purchase as many tokens as they desire.

According to the developers, $MAGE will start its initial trading at $45, with an impressive market value of $850K. As for the final price of tokens, that will be determined by the total amount raised during the sale, leaving eager buyers on the edge of their seats.

CertiK, a security company that tracks blockchain data, has announced that it has identified the primary cause of the recent hack on DEX Merlin. According to their initial findings, the incident’s root cause is likely a private key management issue rather than an exploit.

Although audits cannot prevent vital private issues, the company is always proactive in highlighting project best practices. CertiK will collaborate with the appropriate authorities and share all relevant information if any foul play is discovered. Stay tuned for updates on this matter.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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