X100 Governance Attack Drains $4.85M in USDT
X100 suffered a flash-loan governance attack on 24 October, with attackers taking control of two of the project’s three Senate seats and draining about $4.85 million in USDT. They reportedly borrowed around $1.94 million in USDT through Aave, bought X tokens and used two addresses to gain voting control. The attackers then passed proposals that moved 400,000 X into a pool with only about $100 in liquidity; the treasury received just $35.68. A separate withdrawal transferred about 550,000 X, and the main proceeds were reportedly converted into roughly 2,022 ETH. The attacks unfolded in less than 30 minutes, exploiting rules that allowed newly appointed senators to vote and execute proposals immediately, alongside weak slippage safeguards. About 12.2 million X reportedly remained in the protocol’s Freezer contract at the time of reporting, while X’s market value plunged by more than 96%. X100 had not confirmed a recovery plan or remediation. The incident puts continued pressure on X and highlights risks to DeFi governance and DAO treasury security.
Bearish
The attack is strongly bearish for X in the short term. The reported loss of treasury funds, a market-value plunge of more than 96%, and uncertainty over recovery or remediation can intensify selling, reduce liquidity and discourage buyers. Traders may also price in the risk that remaining assets could be vulnerable. Over the longer term, X’s outlook will depend on whether the project secures the Freezer-held tokens, repairs its governance controls, restores confidence and provides a credible recovery plan. A successful response could limit further damage, but without evidence of remediation, governance and liquidity concerns are likely to weigh on X.