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In November 2023, the decentralized cryptocurrency exchange dYdX confirmed that their exchange’s v3 platform was hit by exploiters, resulting in a significant loss of $9 million from its insurance fund. However, in less than 60 days, dYdX made a public announcement that they had uncovered the identity of the attacker responsible for the attacks on the v3 platform. dYdX quick identification of attackers 
Currently, in the realm of cryptocurrency, it has been observed that exploiters who are responsible for any <a href="https://news.todayq.com/justin-suns-poloniex-vows-full-recovery-after-100-million-hack/">attack are identified</a> within a week, months, or a year, thanks to innovative blockchain technology and support from law enforcement as well as forensics contractors. 
In a post-mortem report on the targeted attack on the v3 platform, dYdX highlights that they are now taking legal action against the person or individuals responsible for those attacks on November 17, 2023. Additionally, the exchange ensures that they have improved and upgraded their v3 trading platform to secure and enhance open-interest monitoring and alerts. This is aimed at preventing such incidents in the future and safeguarding the funds of investors and traders. dYdX introduces of advanced v4 trading platform 
Furthermore, dYdX has introduced an enhanced v4 chain designed to mitigate risks associated with such attacks. Notably, the v4 chain incorporates a new feature that automatically adjusts the initial margin fraction in response to abnormal price changes. 
Examining the attack method, dYdX reported that the attacker initiated numerous 5x leveraged long positions using the YFI/USD trading pair across more than 100 wallets. The attacker strategically purchased Spot Yearn.finance (YFI) tokens, as a result 215% surge in its price. YFI is the native token of the Yearn.finance decentralized finance protocol. 
The situation escalated when the price of YFI plummeted nearly 30% within an hour the next day, stopping the attacker from closing their positions. Fortunately, the insurance fund automatically covered the losses when the attacker’s holdings turned negative. 
dYdX also revealed that a week before the YFI incident, the attacker used a similar strategy on SUSHI/USD, making approx $5 million in profits. However, this had no impact on the v3 insurance fund as dYdX had already increased the initial margin requirement to 100%, stopping the attacker from further gains. 
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dYdX identifies attackers responsible for $5 million exploit, announces legal action

Todayq News

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