Newly launched decentralized exchange Merlin was drained of around $1.82 million from its liquidity pool on Wednesday, with auditor CertiK—who completed an audit of the DEX just before its launch—blaming “rogue developers” for the hack.

In a post on Twitter, the auditor said that, “Initial investigations indicate that the rogue developers are based in Europe, and we are working with law enforcement to track them down,” and urged them to accept a 20% white hat bounty. Merlin itself accused “several members of the Back-End team” of draining its contracts in a Twitter post.

In a statement sent to Decrypt, CertiK said that it was working with “the remaining Merlin team” and the team behind the ZKSync network on a compensation plan for affected users. Merlin has yet to respond to Decrypt’s requests for comment.

Built on zkSync, an Ethereum layer-2 scaling solution, Merlin only launched a few days ago with the public sale of its MAGE token. Immediately before its launch, Merlin also received a code audit from smart contract security firm CertiK—a step that many crypto businesses consider essential in ensuring the safety of users’ assets and maintaining the trust of custo

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Author: Andrew Asmakov

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