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Old FEGex/SD Recovery

Early Challenges

We previously developed and launched a proprietary DEX, fWrap system, and Token Launchpad, each showcasing unique features and functionalities. These platforms were live and actively used by the public during their operational phase.
In the early stages of 2022, our ecosystem lacked the comprehensive security safeguards necessary for optimal protection. This resulted in an exploit of an internal swap function, which was present in both our DEX and the initial classic version of SmartDeFi. This exploit allowed attackers to drain liquidity pools, causing significant financial losses for users.
In the ever-evolving landscape of decentralized finance (DeFi), it's not just about technology; it's also about the incredible community that makes it all happen. As such, the FEG team created a recovery and development plan reflecting the heart and resilience of our DeFi family.

Learning from Mistakes and Enhancing Security

Despite these challenges, we have taken proactive measures to prevent such vulnerabilities in the future. We have conducted thorough third-party audits using leading blockchain security company Peckshield and implemented stringent security protocols. Our lead developer, FEGrox, has also played a pivotal role in strengthening our security posture, drawing valuable lessons from the exploit.

Safeguarding old SmartDeFi Projects

With the support of Peckshield, a security company, FEG developers safeguarded many old SD projects, preventing further theft of liquidity. However, this action also temporarily paused legitimate access to these projects by both teams and traders.

Recovery of Affected Projects

Unfortunately, not all projects can be safeguarded in time; as such, the recovery of all affected projects is planned to proceed in stages.

Stage 1 - Safeguarded Projects

COMPLETED: Safeguarded SD projects have been unlocked COMPLETED: Approximately $1 million has been refunded to investors
Head to the Stage 1 - SDR page to read more about it!

Stage 2 - Drained Projects

Despite all efforts to mitigate the attack's impact, not all projects could be saved; some old SmartDeFi projects had their LP taken. Also, non-SD projects listed on FEGex couldn't be helped, as well as our own ROX token. All funds related to said projects were drained, as such plans were made to generate needed funds from scratch and reimburse investors.
You can read more about it on Stage 2 - Drained Projects page.

Commitment to Affected Investors

We are committed to making sure that all affected investors are reimbursed. We are actively implementing the planned actions and exploring additional strategies to accelerate recovery. Updates will be provided when we have completed another step from the plan.