Hacker Hacks Equalizer DEX, Stealthily Drains User Funds

On May 14, a hacker exploited the decentralized exchange Equalizer, draining user funds through small transactions that went unnoticed. The hacker's wallet, created 222 days ago, has received over 2,353 EQUAL and various other tokens so far. The exploit began with the theft of 2,500 SpookySwap liquidity tokens, leading to the loss of millions of other tokens. The hack has resulted in an 11% drop in EQUAL's market value. The Equalizer team is investigating the incident and has advised users to stop interacting with the exchange and revoke approvals to prevent further loss.

Hacker Exploits Equalizer DEX, Drains User Funds in Stealthy Scheme

On May 14, a malicious actor launched an audacious attack against the decentralized exchange (DEX) Equalizer, siphoning user funds through a series of covert transactions. The theft remained undetected until the Equalizer team issued a public warning urging users to cease interactions with the exchange.

At the time of reporting, the hacker has accrued approximately 2,353 Equalizer (EQUAL) tokens and an assortment of other crypto assets belonging to unsuspecting users. Despite the relatively low value of the stolen tokens, the attacker's cunning approach allowed them to pilfer funds under the radar, evading detection for an extended period.

Investigations reveal that the hacker's illicit activities commenced on May 14 at approximately 4:10 am UTC, with the drainage of 2,500 SpookySwap liquidity tokens (spLP). This initial breach paved the way for the subsequent theft of numerous other tokens from unsuspecting users.

To date, the hacker has amassed a sizable haul, including:

• 2,353 EQUAL across five transactions
• 510,579 FantomStarter (FS)
• 2,500 spLP
• 6 million AnyInu (AI)
• 985,565 ChillPill (CHILL)
• 50,000 WigoSwap (WIGO)
• 25 multiDEUS (DEUS)

The brazen attack has taken its toll on the EQUAL token price, which has plummeted nearly 11% on the day to hover around $8.90. To exacerbate the situation, a scammer seized the opportunity to create a fraudulent Equalizer X account, deceptively advertising a non-existent refund scheme for affected users.

While the investigation into the exploit continues, the Equalizer team is actively working to ascertain the scope and nature of the breach. Through the Equalizer Discord channel, the team has issued a stern warning to users, urging them to implement immediate protective measures:

"If connecting to the dapp [[Connect Wallet]] asks you to Approve something, immediately Stop using that site. If the dapp asks you to interact with a contract you have never interacted with earlier, Stop using that site. If it asks you to approve any contract that is unknown or not in our docs, Stop using that site."

According to Equalizer Discord member "543," users who have refrained from interacting with Equalizer websites within the past six hours are considered safe. However, users who have engaged with the websites during that timeframe are advised to "revoke all your approvals made during this time."

The Discord user "543" emphasized the importance of revoking approvals, citing the potential for ongoing exploitation. Source: Equalizer Discord channel

In a proactive response, the Equalizer team is "working on restoring the main website" and has strongly advised users to refrain from accessing it until the necessary updates are implemented. The team continues to monitor the situation closely and will provide further updates as they become available.

This incident highlights the ongoing threat posed by malicious actors within the cryptocurrency ecosystem. Users are urged to exercise extreme caution when interacting with decentralized exchanges and to thoroughly research any platform before entrusting it with their digital assets.