Decentralized crypto-exchange giant dYdX said Tuesday that one of its on-chain trading services has been "compromised" and warned users against visiting dydx.exchange until further notice.

Specifically, the website for dYdX v3, an older version of its trading platform that averages around $1.5 billion in weekly derivatives trading volume, "has been compromised," per a tweet.

Is Bitcoin Losing Its Bullish Momentum?

02:24

U.S. Added 142K Jobs in August; UK Crypto Companies Struggle With Licensing

00:55

Pastel Network Co-Founder on 'Resurgence' in the Solana Ecosystem

00:43

Is the U.S. Election Impact on Crypto 'Oversold'?

15:25

Understanding September's Market Volatility

The attack does not appear to impact funds traders already have on dYdX, as only the web domain, and not the underlying smart contracts, appear to be being targeted, according to statements in dYdX's Discord server.

"The attacker has taken over the v3 domain (dydx.exchange), and deployed a copy-cat website that when users connect their wallets to it, it asks them to approve via PERMIT2 transaction to steal their most valuable token," a member of dYdX's community team said in the project's Discord server.

The larger dYdX v4 venue (which last week saw $6 billion in trading volume) is unaffected.

The problem was announced just after Bloomberg reported dYdX v3 is up for sale, with interested buyers including major market maker Wintermute.

UPDATE (July 23, 2024, 16:29 UTC): Adds that funds on dYdX do not appear to be affected.

Edited by Nick Baker.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

DeFi Giant dYdX Says Its v3 Platform Is Compromised – Just as It's Reportedly Up for Sale

News of the problem emerged just as Bloomberg reported dYdX v3 is for sale.

Is Bitcoin Losing Its Bullish Momentum?