Cetus Exchange Hack Underscores Decentralized System Vulnerabilities

A recent hack on the Cetus decentralized exchange, as revealed by security firm Dedaub in a detailed report, exposes vulnerabilities within these systems. The exploit, stemming from an oversight in the automated market maker (AMM) code’s most significant bits (MSB) check, enabled hackers to manipulate liquidity values extensively, leading them to establish large positions with minimal token input and drain pools containing hundreds of millions of dollars worth of tokens. This incident raises concerns about cybersecurity within the rapidly evolving crypto and Web3 sectors.