Original | Odaily Planet Daily ( @OdailyChina )
Author | Fu Howe ( @vincent 31515173 )
In the AMA session of Meme Industry Construction Conference No. 1: The Truth of the Incident ✖️The Future of the Industry | DEXX Incident held by LBank last night, the DEXX platform, the victims representative Hella, the fund donor representative LBank and many KOLs discussed the whole process of the DEXX theft, and had an in-depth discussion on the subsequent development of the DEXX platform and the victim compensation plan.
In this AMA, in addition to reviewing the mental journey of all parties involved in the DEXX theft incident, the victim representative Hella also expressed relevant questions about the official compensation process of DEXX. The overall focus was on the unclear compensation object, the compensation progress, and the subsequent platform currency compensation plan.
The following is a review of Space, compiled by Odaily Planet Daily.
Review: How three parties view the DEXX theft incident
Eric He, the investor representative - LBank: At first, we were not interested in restarting DEXX. From a business perspective, restarting is extremely difficult, and a simple compensation plan does not have much commercial value. But Roys persistence moved us. He contacted us many times, constantly looking for solutions, and firmly stated: I must do my project well, otherwise I will not live with my conscience. This sense of responsibility made us see the value of DEXX and prompted us to re-evaluate the situation.
In order to make the restart more likely to succeed, we contacted many teams, including Matcha, hoping to gather more forces. Everyone finally reached a consensus. Then we began to study the compensation plan. This matter is extremely complicated. Not only does it involve huge amounts of money, but it also requires coordination from all parties. Roy was under great pressure for this, and even accepted some unequal treaties and sell-indenture agreements. In fact, our team agreed to participate around December 2024, but in order to introduce more partners, increase the compensation amount, and satisfy more users, this matter was postponed for several months.
At present, we have officially launched the compensation plan, and the strategy we have adopted is to give priority to compensating small users, because everyones financial resources are limited and it is impossible to compensate in full. It is worth mentioning that all the big users are very understanding. When they communicated with Roy, they almost unanimously said: Compensate the retail investors money first. My amount is large, so I can take it slowly. As long as you are willing to stick to it, I can accept the compensation after making money slowly in the future. This touched me deeply and made me full of respect for the Chinese-speaking cryptocurrency circle.
The difficulty of restarting the entire DEXX incident is extremely high, but being able to bring together so many teams in the Chinese-speaking world to work together and getting the support of big investors gives us more confidence to persevere.
Platform Representative - DEXX Roy: Before the DEXX incident has a clear solution, saying anything about it will become a target of public criticism. Therefore, I chose to synchronize the progress of the incident to the outside world as little as possible throughout the process.
The first time I disclosed it to the public was in December, when a reporter from Odaily Planet Daily contacted me and asked me to respond to the relevant questions. In this interview, I gave a detailed account of the causes and consequences of the DEXX theft, our response measures at the time, and future plans.
After the theft, our initial reaction was to track down the hacker with all our strength. We invested a lot of energy and resources in the hope of locking down the hacker and recovering the assets as soon as possible. However, this process was more complicated and difficult than expected, and ultimately failed to achieve the desired results.
So we began to turn our main focus to institutions, looking for partners who could support DXs compensation and restart. In the past few months, I have had dozens of meetings with institutions in the Chinese market. In the end, some institutions decided to support DEXX and began to enter the market in December. In the list of institutions announced today, there are actually some investors who have not yet been disclosed, and they will be announced in the second round later.
In addition to funding issues, another challenge facing the restart of DEXX is team stability. After encountering a malicious incident, team members will inevitably feel uneasy and even choose to resign. We have to spend a lot of energy to stabilize the team and recruit at the same time. However, the DEXX incident is well known in the Chinese cryptocurrency circle, and recruitment is extremely difficult.
On the other hand, the calculation of user compensation is also a huge project. After the incident, we need to accurately calculate the amount of damage, but the special feature of the DEXX incident is that some of the funds were transferred by users themselves, rather than stolen by hackers. In order to clarify the flow of this part of the funds, our cooperation team spent 10 days checking the transaction records one by one.
Security issues have always been the core task of restarting DEXX. In order to ensure that similar risks will not occur in the future, we not only absorbed the security teams of major institutions and centralized exchanges to intervene, but also rebuilt a security team and comprehensively upgraded the system architecture.
Victim representative Hela: Looking back on that day, I just bought 100x coins in the first half of the night, and they were stolen in the second half of the night. I immediately created a group to defend my rights and opened a space. My mood fell from the peak to the bottom, and coupled with my menstrual period, my whole state was extremely bad. Now three months have passed, it feels like a dream. It has not been easy along the way. Fortunately, the final result is good.
A new contradiction arises: Unclear compensation process triggers doubts from victims
The compensation rules are unclear and victims question the progress
In a conversation with Roy, the victim representative Hela emphasized the lack of transparency in the official compensation rules and the unclear progress. Although the DEXX platform announced in the announcement that compensation would start on February 8, Hela and other users said that the number of users who actually received compensation was small and the amount of compensation was small. She particularly pointed out that the platforms compensation rules were confusing and many victims could not understand the order and logic of compensation.
Hella used the DEXX platform announcement as an example, saying that the platform had stated that it would prioritize compensation for the interval with the largest number of victims, but the staff said that the order of compensation was from small to large. In addition, regarding the progress of compensation, the DEXX platform staff provided different statements - some said that 200 people could be compensated every day, while others said that only dozens of people could be compensated every day, causing victims to distrust the progress of compensation.
As for the compensation for large users, Hella revealed that although the DEXX platform had stated that it had communicated with large users, the large users in her community said that they had not received such information. Instead, they questioned why small users were compensated first while large users were ignored.
Platform response: Manual review affects progress, and the order of compensation has been dynamically adjusted
In response, Roy explained that the compensation process was only officially launched on February 8, and had not been advanced before because the platform was attacked. Roy said that the workload of compensation was huge because each compensation needed to be manually reviewed, including debt confirmation, amount verification, and conversion into SOL tokens before payment. Therefore, although it was originally planned to handle about 300 victims per day, the DEXX platform was unable to handle all compensation requests in a short period of time due to the cumbersome manual review.
In terms of the order of compensation, Roy further clarified the original plan of the DEXX platform: the compensation will be divided into several levels according to the amount of loss, first processing users with less than $1,000, and then processing higher amounts of compensation in sequence. However, as the compensation work progressed, the platform realized the sentiment of the victim community, so it made adjustments and inserted the compensation of some large users into the process of small compensation to speed up the overall compensation speed.
Compensation issue for large users: The platform said it had communicated with large users and planned to gradually resolve the issue
The issue of compensation for large users is particularly sensitive. Roy said that the platform had held several communication meetings with victims who lost more than $100,000 in December 2024. The platform made it clear that although the compensation time has been adjusted, the compensation for large victims will not be ignored. Since large compensation involves a large amount of money, the platform cannot compensate all large users at once, so it has adopted a method of individual negotiation with large users to deal with it.
Hellas core question: compensation progress and fund transparency
Although Roy explained the workload and adjusted plan for compensation, Hella still raised several core issues, especially regarding the progress of compensation and transparency of funds.
1. Unclear compensation progress: Hela said that she had no idea how many users the platform could compensate every day, how much each person would be compensated, and when all compensation would be completed. She pointed out that the DEXX platform had issued more than 2,300 NFTs to stolen users, but the platform mentioned that there were more than 8,000 addresses. Hela was confused by this and thought that the stolen data should have been verified, so why the compensation had been delayed.
2. Fund transparency: Hella also mentioned that the DEXX platform had announced that it had raised $15 million, which was theoretically enough to cover most of the compensation needs. However, she doubted whether the funds had been received, and if so, why the compensation progress was still slow. She asked the platform to provide clear information on the flow and use of funds.
3. Transparency of compensation disclosure: The platform once stated that it would list the NFT addresses of daily compensation in the disclosure, but she has not seen the relevant information so far. She questioned whether the platform was opaque in the process of executing compensation, and asked the platform to ensure that the NFT address of each compensation could be made public to increase transparency.
4. Loss compensation plan: For users who have suffered large losses, the DEXX platform has stated that it will use platform coins to compensate users with large losses, but she hopes that the platform can clarify the standards and scope of application of compensation as soon as possible to avoid users being in an uncertain state.
Platform response: Funds are gradually arriving and compensation plans are being formulated
Roy further explained Hellas question. He said that although the platform raised $15 million, the funds were not received all at once, but gradually. The DEXX platform did not receive all the money at once, which also affected the progress of compensation. Roy admitted that although the existing funds are sufficient to cover 80% to 90% of the users compensation needs, large compensation still needs to be handled gradually.
In terms of fund transparency, Roy explained that the DEXX platform cannot disclose detailed fund flows and transfer information due to confidentiality agreements. But he made it clear that the existing funds are sufficient to cover the compensation needs of most victims.
Regarding the public announcement of compensation, Roy promised that the DEXX platform will release detailed compensation progress through official channels in the next few days to ensure that every victim can see whether they are on the compensation list. The specific compensation amount and NFT address will also be made public.
Regarding the loss compensation plan, Roy revealed that the DEXX platform is designing a compensation mechanism to compensate users who have suffered large losses due to market declines in the form of platform coins. The compensation will be allocated according to the degree of loss. The greater the loss, the higher the amount of compensation. The DEXX platform is expected to announce specific compensation details in the next few weeks and provide users with query tools to facilitate them to check the amount of compensation they can get.
Although Roy tried his best to explain the difficulties in the compensation process and promised to speed up the processing, Hela and other victims still have great doubts about the transparency and progress of the platforms compensation. However, the current compensation strategy is still being adjusted. Although some compensation has been paid, most victims are still waiting. Especially in terms of fund transparency and publicity, the DEXX platform still needs to take clearer and more open measures to reduce user distrust.
