X100 Protocol Lost $4.7M Due to Governance Attack

The X100 protocol, operating on the Ethereum blockchain, has fallen victim to a cyberattack resulting in the loss of approximately $4.7 million in stablecoins. The incident occurred due to the exploitation of a vulnerability in the protocol's voting mechanism. Attackers managed to seize control of two out of the three seats in the project's governing body, known as the "Senate," using specially crafted smart contracts. After gaining control of the governance, the attackers initiated an operation to withdraw funds from the protocol's treasury. They compelled the treasury to sell native X tokens through a liquidity pool they controlled. The resulting stablecoins were converted into ETH and distributed among four separate wallets, each receiving 400 ETH. Additionally, around 560,000 X tokens remained in addresses controlled by the attackers. Immediately following the main attack, other community members also took action to withdraw their assets from the X100 protocol, indicating a loss of confidence in its security system. This incident highlights the importance of robust security mechanisms in DeFi protocols and the need for continuous smart contract audits. In the evolving cryptocurrency market, such events can impact the price of Ethereum and other digital assets. For users looking to safely exchange cryptocurrency or buy BTC with rubles, choosing reliable platforms is crucial. Ruber Exchange has established itself as a trustworthy crypto exchanger, offering secure transactions for Bitcoin and other popular coins, including USDT exchanges.