dYdX Bans 'Highly Profitable Trading Strategies' After Targeted Trades on Exchange
The announcement was made after a multimillion-dollar trade had to be compensated by the platform’s insurance fund. The announcement was made after a multimillion-dollar trade had to be compensated by the platform’s insurance fund....
- On November 17th, the dYdX exchange and its YFI token were targeted by an unknown individual or team in a multimillion-dollar trade.
- The trades caused open interest on the exchange to surge by over $66 million and resulted in $9 million of the insurance fund being burned.
- No user funds were affected by the trade, but stopgap measures have been implemented to prevent further attacks.
- The search for the person or team behind the trade is underway, and dYdX's founder is cooperating with the FBI.
- Bounties will be given to community members who help trace down the alleged attacker.
- Avraham Eisenberg, who executed a similar trading strategy against Mango Markets, has been charged with criminal offenses.
- dYdX has banned all highly profitable trading strategies on the platform.
The sentiment of the article is mostly negative, focusing on the attack on dYdX and the potential consequences for the platform and its users.