CryptoMediaClub
Monday, July 28, 2025
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home Blockchain

CertiK to launch compensation plan for $2M Merlin DEX exploit

26.04.2023
A A
0
124
VIEWS
ShareShare

Blockchain security firm CertiK is launching a compensation plan to cover the $2 million lost during a public sale of decentralized exchange Merlin’s MAGE token.

In a statement to Cointelegraph on April 26, CertiK reiterated it is investigating the exit scam and has also enlisted the remaining Merlin team to initiate the compensation plan. It said:

“Initial investigations indicate that the rogue developers are based in Europe, and CertiK will collaborate with law enforcement authorities to track them down if direct negotiation is unsuccessful.”

The blockchain security company is urging the rogue developer to return 80% of the stolen funds, conceding 20% as a white hat bounty.

The firm also pointed out that private key privileges are “committed to assisting impacted users” despite them being outside the scope of a smart contract audit.

Merlin lost about $850,000 worth of USD Coin (USDC) and some more relatively illiquid tokens on April 26 during its three-day MAGE token public sale without any hard cap. Blockchain data suggests that an exploiter with control over the liquidity pool was able to easily siphon the funds.

We did some research on Merlin smart contracts and we identified the malicious code responsible for the draining of funds.
These two lines of code in the initialize function are essentially granting approval for the feeTo address to transfer an unlimited (type(uint256).max)… pic.twitter.com/mIksh4HkhB

— eZKalibur ∎ (@zkaliburDEX) April 26, 2023

CertiK, which audited Merlin’s code, responded with its initial findings pointing to a “potential private key management issue.”

We’re actively investigating the @TheMerlinDEX incident. Initial findings point to a potential private key management issue rather than an exploit as the root-cause.
While audits cannot prevent private key issues, we always highlight best practices to projects.
Should any foul…

— CertiK (@CertiK) April 26, 2023

Crypto Twitter questioned the CertiK audit, implying that there might be a rug pull.

Verichains founder Thanh Nguyen alluded to a “backdoor” present in Merlin’s code, saying it is a “clear security risk as there is no use case that requires its approval.”

3/4 However, in the Merlin code, there is a "backdoor" code (L87-88) that allows the feeTo of MerlinFactory to transfer all assets in the pair, in addition to the fee in the swap function. This backdoor is a clear security risk as there is no use case that requires its approval. pic.twitter.com/HAnwZT27ZS

— Thanh Nguyen (@redragonvn) April 26, 2023

“While audits can identify potential risks and vulnerabilities, they cannot prevent malicious activities on the part of rogue developers such as rug pulls,” CertiK said in a statement to Cointelegraph. “We encourage users to look for projects with a ‘KYC Badge’ as an added layer of security, signifying that the project has voluntarily gone through a KYC vetting process.”

Related: Ordinals Finance has conducted a $1M rug pull: CertiK

The firm explained that doing so can help reduce and mitigate the risk of insider threats such as rug pulls.

CertiK said it would continue providing updates on its compensation plan and ongoing investigation.

This article was updated to reflect that only CertiK had proposed a compensation plan for the Merlin DEX exploit.

Share10Tweet6ShareSharePin2

Related Posts

Ondo Finance Unleashes Revolutionary Tokenized US Treasuries on Sei
Blockchain

Ondo Finance Unleashes Revolutionary Tokenized US Treasuries on Sei

18.07.2025
0

Skip to content

Read moreDetails
Hashed stablecoin: South Korea’s Crypto Giant Unveils Bold Trademark Play

Hashed stablecoin: South Korea’s Crypto Giant Unveils Bold Trademark Play

17.07.2025
LA Token’s Strategic Move: Lagrange Foundation Considers Crucial Buyback for Price Stability

LA Token’s Strategic Move: Lagrange Foundation Considers Crucial Buyback for Price Stability

14.07.2025
Shocking Loss: Crypto Influencer Accidentally Burns $75K in PUMP Token

Shocking Loss: Crypto Influencer Accidentally Burns $75K in PUMP Token

14.07.2025
Dubai’s Historic Approval: Qatar National Bank Launches Revolutionary Tokenized Money Market Fund in DIFC

Dubai’s Historic Approval: Qatar National Bank Launches Revolutionary Tokenized Money Market Fund in DIFC

08.07.2025
Load More
Next Post
Binance.​US enables free Web3 domain creation for American users

Binance.​US enables free Web3 domain creation for American users

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

92% of Global Respondents Have Basic Knowledge of Crypto: Survey

2 years ago
PEPE Whales Accumulate Amid Market Volatility: Is a 200x Rally Coming?

PEPE Whales Accumulate Amid Market Volatility: Is a 200x Rally Coming?

3 weeks ago
Terra Luna Classic Price as LUNC Rallies 70% in 7 Days – $1 LUNC Possible?

Terra Luna Classic Price as LUNC Rallies 70% in 7 Days – $1 LUNC Possible?

1 year ago
Ripple Vows to Defend Against SEC Lawsuit, Significantly Impacting the Crypto Landscape

Ripple Vows to Defend Against SEC Lawsuit, Significantly Impacting the Crypto Landscape

2 years ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Metaplanet Buys 780 More Bitcoin, Total Now Over 17,000 BTC

South Korean Crypto Exchanges Paid Customers $87M in Interest in Past Year

Tyler Winklevoss Says JPMorgan Halted Gemini Onboarding Over Public Criticism

Ripple’s Chris Larsen Still Holds 2.58B XRP, Analyst Warns of Potential Sell Pressure

Solana Price Prediction: SOL Breaks Key Resistance – What This Means for Future Gains

Bitwise CIO Bets on Bitcoin Rally in 2026, Defying 4-Year Cycle

Trending

Senate Democrats Question Housing Agency Over Crypto in Mortgage Plans
All news

Senate Democrats Question Housing Agency Over Crypto in Mortgage Plans

28.07.2025
0

A group of Senate Democrats is demanding answers from the head of the Federal Housing Finance Agency...

ASIC Warns Australians Against Bitget’s “Unlicensed” Crypto Futures Offerings

ASIC Warns Australians Against Bitget’s “Unlicensed” Crypto Futures Offerings

28.07.2025
Crypto Lender Divine Uses Iris-Scanning World ID to Disburse 30,000 Unsecured Loans

Crypto Lender Divine Uses Iris-Scanning World ID to Disburse 30,000 Unsecured Loans

28.07.2025
Metaplanet Buys 780 More Bitcoin, Total Now Over 17,000 BTC

Metaplanet Buys 780 More Bitcoin, Total Now Over 17,000 BTC

28.07.2025
South Korean Crypto Exchanges Paid Customers $87M in Interest in Past Year

South Korean Crypto Exchanges Paid Customers $87M in Interest in Past Year

28.07.2025
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz