DEXTools Token Minting

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DEXTools

DexTools offers a suite of information services for crypto-asset investors. They fund the operation through a DEXT token. Unfortunately, the hacker appears to have been able to mint new tokens, and sold those for $1.2m.

This is a global/international case not involving a specific country.

About DEXTools

"Real-time data analysis at the tips of your fingers: Create unique trading strategies, anticipate market movements, search for big spreads, track and copy the most profitable wallets and much more."

"DEXT is a multifaceted, interactive trading tool that will be paramount in your trading success. Currently ending their beta, DEXT provides trading tools such as: DEXTboard, Pool Explorer, Pair Explorer, Big Swap Explorer, Token Catch, Spread Hunter, and various other functionality for a multitude of exchanges. This includes Uniswap and IDEX with tangible, working products. DEXT has the ability to integrate their tools to work with additional exchanges such as Mooniswap, Sushiswap, and Kucoin which are all coming soon. Due to how responsive the devs are, if the community wants other exchanges included, they are willing to include them too! Whether it’s a DEX or CEX, DEXTools has the ability to help navigate your trading experience."

"The DEX trading tool DEXTools (DEXT) tweeted that it was recently hacked and affected some DEXT holders. In this regard, the liquidity has been removed from Uniswap and Pancake and will be exchanged today (token swap). This should refer to the issuance of new tokens), the snapshot has been taken. DEXTools reminds users not to purchase DEXT tokens for the time being, and more detailed measures will be announced soon." "[T]he hacker was able to steal approx 4.8m dext at a total valuation 1.2m USD."

"Hi Community, recently we suffered a Hack and some $DEXT holders were affected, in order to guarantee the funds, we will proceed with a token swap today. A snapshot has been taken and the next steps will be shared soon. Please do not purchase $DEXT." "We removed the liquidity from both pools, Uniswap and Pancake. Wait for the new announcement before buying DEXT. Tokens purchased after the Snapshot won't be supported."

"In order to protect the community, the @DEXToolsApp team has preserved the liquidity pool by being able to drain it before the hacker had a chance to steal $1.2m." "A snapshot was taken prior to the liquidity preservation and a new token will be airdropped to existing holders."

"Please DO NOT BUY DEXT - if you've purchased after liquidity was pulled, we encourage you to sell and recover what capital you can as the tokens will not be honored."

"Hi $DEXT Community, the token swap was done as expected. All Holders already received their new $DEXT tokens and the new pool is set up and ready. Thanks to all the community for your patience and support." "Contract updated from 0x26ce25148832c04f3d7f26f32478a9fe55197166 to 0xfb7b4564402e5500db5bb6d63ae671302777c75a."

"The Chainswap bridge is resumed. Asset swaps and permissionless deployment are back online. We are preparing a post-mortem about the attack to our community and compensation plan will be in place soon."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - DEXTools Token Minting

Date	Event	Description
July 3rd, 2021 12:00:00 AM	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Total Amount Lost

The total amount lost has been estimated at $1,200,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Prevention Policies

As all affected users received an equivalent number of the new tokens, no assets were lost and only the token price was affected. This situation was most likely the result of additional tokens being minted or stolen from a treasury, which could have been prevented through the user of a proper multi-signature wallet, and further mitigated by proper cold storage.