Chainalysis reports that in the X100 stablecoin vulnerability incident, the attacker first took control of the protocol voting rights and then transferred approximately $4.7 million in stablecoins.
By seizing the Senate seat, the attackers obtained a majority of votes, thereby gaining control over the treasury assets and transferring these assets to their controlled fund pool.
X100 How Stablecoin Vulnerabilities Affect the Treasury
According to Chainalysis, the contract used in the attack seized the Senate position within the protocol, allowing the attacker to gain a majority of votes. This control gave them the ability to manipulate the treasury assets.
Freezer The vault was forced to sell its assets into a fund pool controlled by the attackers. The sequence of fund transfers reported in the report directly links governance takeover with the transfer of funds: control over voting rights allowed the attackers to redirect the vault's assets.
After the extraction was completed, the stolen funds were converted into ETH. Chainalysis traced these funds to be allocated into four wallets, with each wallet holding 400 ETH.
Governing weaknesses are not limited to stolen funds.
The vulnerability in the stablecoin exposed a serious weakness in decentralized governance, allowing attackers to manipulate the treasury by exploiting their majority control. This security lapse involved both the voting structure of the protocol and the assets managed by that structure.
This incident has raised concerns from the outside world regarding the security of decentralized finance and the integrity of leaving treasury decisions to protocol governance systems. In this case, seizing the Senate position provided the control necessary to force assets to be sold into the attacker's controlled fund pool.
Chainalysis also pointed out that there are still approximately 560,000 X tokens in the attacker's address that have not been sold.
The article was generated with the assistance of artificial intelligence and has been reviewed by an editorial team.
