Memecoin Platform DxSale Raises $7.3M Over 1,400 LPs
Memecoin startup platform DxSale has lost $7.3 million in funds due to a cyber attack on BNB Chain that targeted around 1,400 Liquidity Providers (LPs).
The attacker's address “0xC457” transferred $1.87 million worth of BNB (BNB) tokens to two major wallets and then deposited them into multiple Binance deposit addresses, blockchain data platform PeckShield said in an X-Post on Friday.
In the year In 2021, DxSale was used to lock in liquidity for tokens launched on the BNB Chain. Blockchain analyst Tahax speculated that the blockchain still holds liquidity from projects launched years ago and explained that the exploit wallet was newly created and funded through crypto exchange Bybit.
Exploited decentralized finance (DeFi) hacks stole $52 million in May, down from $634 million in April, a more than one-year high last February 2025, according to data aggregator Defilama.
The rise in cyberattacks has led to widespread concern that the broader DFI sector is insecure, in part due to the growing use of AI by malicious actors. Manuel Araoz, founder of blockchain security platform Openzeppelin, said on Tuesday that “I consider *all* DeFi insecure now, noting the growing ability of AI to detect smart contract vulnerabilities.”
Source: PeckShield
DxSale stolen funds are already untraceable: onchain analyst
The attacker may have already moved some funds through the infrastructure, making the search more difficult, Tahaks said.
The analyst alleges that the DxSale deployer quietly transferred ownership of the lock contract to a new wallet 269 days ago, without an official migration notice, “leaving a backdoor.”
Source: Tahaks
The analyst pointed to evidence of an additional 80 transactions onchain before ownership of the contract landed at Wallet ‘0xC45', which began mass BNB withdrawals.
Related: Mysterious Bitcoin Burn Destroys 107 BTC Value to $8.5M
A backdoor in the deployer's contract, combined with a backdoor lock, allowed the hacker to use withdrawal loops and extract BNB tokens, Web3 security platform Coinsult wrote in a Friday X post, adding:
“Privileged setFee and delayed lock turn ‘locked' deposits into withdrawable balances.”
Cointelegraph reached out to DxSale for comment on the exploit and the eventual victimization of liquidity providers.
The exploit adds up to more than $17 billion in crypto mining losses tracked by Defillama, including about $7.8 billion from DeFi protocols.
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