XEN price drops 46% after issuing 100 million tokens in an attack on the network

The attackers used the FTX crypto exchange’s hot wallet address to sponsor the attack

13.10.2022 - 10:45

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What’s new? On October 10, hackers attacked the XEN Crypto (XEN) project on the Ethereum network. According to BeInCrypto, the attackers took advantage of a vulnerability that allowed more than 100 million XEN tokens to be issued. According to aggregator CoinGecko, XEN is trading at $0,0000889 as of October 13, 10:00 UTC, having lost 46,1% in 24 hours.

BeInCrypto’s material

More details about the hack. The hackers deployed the attack contract and then used the FTX crypto exchange’s hot wallet address to transfer small amounts of ETH. Each such transaction creates 1 to 3 subcontracts, which then issue XEN tokens. That said, at the time of writing, the attack is still ongoing.

It was also reported that XEN Crypto was subjected to a so-called Sybil attack. Such a hack involves a hacker using multiple fake identities on a peer-to-peer (P2P) network to create fake addresses, with each one able to perform its own transactions or even become a validator.

What is XEN Crypto? It is an ERC-20 standard token created by the Fair Crypto Foundation, which was founded by former Google employee Jack Levin. According to the website, the project aims to promote core cryptographic principles: “self-custody, trust through consensus, transparency, and decentralization.”

On October 12, DeFi platform Mango, based on the Solana blockchain, was subjected to a hacker attack, that resulted in a loss of more than $100 million in cryptocurrency. Amid this news, the governance token MNGO lost more than 40% of its value. The exploit was done by manipulating the price oracle and inflating the real value of MNGO tokens.

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