A hacker began draining user funds on May 14 through the decentralized exchange (DEX) Equalizer. The diversion of funds came to light after the Equalizer team tweeted, advising users to cease interacting with the platform's front end. This proactive communication was meant to prevent further losses and alert users to the ongoing issue.

The hacker has successfully drained around 2,353 Equalizer (EQUAL) tokens and several other types of tokens from users so far. Although the value of the stolen tokens is relatively low, the hacker’s strategy of executing small transactions allowed them to continue siphoning funds without drawing immediate attention. This method enabled the hacker to remain undetected for a longer period.

The hacker’s wallet address was established over 222 days ago and is actively receiving the stolen user funds. The theft began with the drainage of 2,500 SpookySwap liquidity tokens (spLP) at around 4:10 am UTC on May 14. This initial theft led to the hacker taking many other tokens from users, significantly impacting their holdings.

The total number of tokens drained so far is substantial and includes 2,353 EQUAL across five transactions, 510,579 FantomStarter (FS), 2,500 spLP, 6 million AnyInu (AI), 985,565 ChillPill (CHILL), 50,000 WigoSwap (WIGO), and 25 multiDEUS (DEUS). The impact of these thefts has been felt in the market, with the price of EQUAL dropping almost 11% on the day to around $8.90.

To make matters worse, a scammer created a fake Equalizer X account and posted instructions for affected users to claim a refund, further confusing and potentially defrauding users. The Equalizer team is still investigating the exploit to determine if all the tokens were drained through the Equalizer DEX. They have issued guidance through their Discord channel, advising users to take preventative measures to stop further losses and to avoid using the main website until it is restored.