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The group behind the decentralized finance (DeFi) protocol CrediX Finance seems to have vanished after a $4.5 million breach that drained assets from the platform, triggering worries of a potential exit scam.
On Monday, blockchain security companies flagged the breach and confirmed that crypto holdings valued at $4.5 million had been seized from the platform. Consequently, the DeFi protocol suspended its website to stop users from adding any further funds.
Blockchain security company SlowMist stated that six days prior to the breach, the attackers gained access to the protocol’s multisig administrator and bridge wallets. This access was exploited to create crypto that served as collateral to siphon off the DeFi protocol’s liquidity reserves.
On Friday, the official X account of the platform went silent, and its website has stayed offline since Aug. 4, the date of the breach. The company’s official Telegram channel has also disappeared, with no further updates provided.
DeFi protocol disappears after pledging reimbursements
In a now inaccessible X message, CrediX Finance claimed on Tuesday that it had persuaded the perpetrator to return the assets within two days in exchange for funds from the protocol’s treasury.
The firm stated it would fully compensate its users for the assets lost in the breach via an airdrop.
“Successfully negotiated with the perpetrator who consented to return the assets within the following 24-48 hours in exchange for money entirely funded by the CrediX treasury,” CrediX declared.
However, since then, the firm has remained quiet, erasing all of its official channels.
Related: Top 100 DeFi Hacks: Offchain attack vectors account for 57% of losses
Stability DAO to identify two members of CrediX Finance
The decentralized autonomous organization Stability DAO notified its users that it is preparing to release an official legal report. According to the Stability DAO team, they had reached out to impacted groups, including Sonic Labs, Euler, Beets, and Trevee (previously Rings Protocol).
This coalition plans to cooperate with law enforcement, aspiring to recover the lost assets. “Our teams are working together to gather all evidence, track the funds, and coordinate with relevant legal and cybercrime units,” the Stability DAO team mentioned.
The DAO announced it will provide a detailed incident report to the community, detailing the events and the measures being undertaken. The DAO also stated it has obtained KYC information for two members of CrediX, which will be included in the legal report.
Trevee, formerly Rings Protocol, indicated that the breach indirectly affected it through its $1.6 million scUSD loan to Stability’s metaUSD, which became fully exposed to CrediX following a bank run.
The team revealed it has reduced its exposure to over $700,000. In response, the protocol halted the minting of its stkscUSD asset and established a new backing price.
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