Web3 betting platform Dexsport announced it fell victim to a hack attack which ended up in an illicit withdrawal of $400,000 in BUSD from platform’s protocol for additional liquidity.
In a letter to its users, Dexsport details that, on November 30, hackers exploited a vulnerability in the off-chain part related to the case-sensitive recording of unique transaction identifiers for processing deposits and increased the balance of their wallets. After that they quickly withdrew the funds.
The Dexsport team detected the breach and fixed it, but $400,000 in BUSD was lost. User funds were not compromised, Dexsport underpins. The stolen coins were used as an additional reserve liquidity for players.
All operations were retrieved in a few hours. By the start of World Cup matches in Qatar, all services at the platform were fully operational.
“The vulnerability was not on the side of our smart contracts as they are constantly tested and audited by the leading security firms Certik and Pessimistic. We know that, in a trustless environment, the reputation is one of the main treasures, especially in a bear market. Therefore, we pay maximum attention to the high level of user experience and safety of user funds,” reads Dexsport's official press release.
Dexsport is the first Web3 betting platform. It is deployed on the Binance Smart Chain, OKX, Polygon, and Avalanche blockchains. The project provides a secure and transparent betting system.