dYdX Founder Claims Targeted Attack Led to $9M Insurance Claim By Cointelegraph

Decentralized exchange (DEX) dYdX was forced to tap into its insurance fund to cover $9 million in user settlements on November 17. According For dYdX founder Antonio Juliano, the losses were the result of a “targeted attack” against the exchange.

According to reports from the dYdX team at X (formerly Twitter), the v3 insurance fund was used “to fill gaps in settlement processes in the YFI market.” The Yearn.finance (AND FI) token fell 43% on Nov. 17 after skyrocketing more than 170% in the weeks prior. The sudden drop in prices raised concerns within the crypto community about a possible exit scam.

Balance changes in the dYdX insurance wallet. Source: DYDX Explorer