Project X100 in Ethereum Under Attack with Millions in Damages

The blockchain project X100, operating on the Ethereum network, has suffered a large-scale attack. According to the blockchain security company Blockaid, the attackers gained control over assets worth approximately 4.85 million USDT and also withdrew hundreds of thousands of X tokens from the protocol. The incident affected the project's governance mechanisms and liquidity on the decentralized exchange Uniswap V3. According to published information, several attackers participated in the attack, using different methods to access the assets.

One of the attackers secured two out of three seats in the project's governing body, known as the Senate. Using the obtained majority, he sold 400,000 X tokens from the treasury through a liquidity pool he created, which previously had no assets. Another attacker affected the Uniswap V3 liquidity positions associated with the Freezer smart contract. Later, Blockaid reported on the actions of a third participant, who used the same governance mechanism to withdraw approximately 550,000 X tokens from the remaining liquidity on Uniswap V3. Thus, the attack affected both the project's treasury funds and the assets that supported the operation of trading pools.

According to the latest data from Blockaid, the Freezer contract still holds about 12.2 million X tokens, and the attack is ongoing. The published information does not allow the incident to be considered concluded or the final amount of damage to be determined. The situation highlights the importance of protecting protocol governance mechanisms and controlling access to smart contracts: obtaining a majority of votes can allow changes to the project's decisions and management of its assets. Additional risk arises when such powers are linked to liquidity on decentralized platforms. The further consequences for X100 will depend on the development of the attack and the team's actions to restrict the attackers' access.