CrediX, a new decentralized lending protocol, has faced criticism following its recent apparent manipulation. The team behind the project had initially stated that it would compensate the affected users after a security breach caused them to lose 4.5 million dollars. However, since that announcement, all official activities have ceased.
The project’s X account was deactivated shortly after the incident, a move that the team claimed was to prevent misinformation. The subsequent silence has only served to raise further community suspicion that CrediX might have been an exit scam the whole time.
CrediX Silence’s Instead of Action
Smart contract vulnerability risks have existed for a long time, and in the case of CrediX, the lack of transparency in their incident response has only worsened the situation.
In response to the hack, the company announced that the users would be reimbursed, which is a common response to a hack that the industry has used to calm communities in previous DeFi hacks.
Since then, however, the team has not provided a post-recovery plan, or token holder communications, or wallet tracking statistics.
With user anxieties building, the deactivation of the project’s online presence, such as the loss of its X account and closure of its community channels, only added to the narrative that CrediX itself might have been using the hack to provide a smokescreen to withdraw the balance funds.
A Harsh Reminder of DeFi’s Trust Deficit
It is the latest example in a series of incidents that highlight structural risks in decentralized finance.
Audits and permissionless access represent the philosophy of DeFi, but what the CrediX incident reveals is that without transparency such trust can be broken.
To this point, smart contracts that the project envisioned are lying dormant, and the token has erupted in value. None of the crew members brought official news.
It is unclear whether law enforcement or forensics of all blockchain companies will get involved. In the meantime, the victims will have to contend with another example of the warning in the turbulence of DeFi history.
