BlockTower Capital appears to lose $1.55 million in Dexible exploit

BlockTower Capital seems to have lost $1.55 million due to the recent exploit of the decentralized exchange Dexible.

At around midnight ET last night, 17.96 million TrustToken (TRU) worth $1.55 million were moved from a wallet associated with BlockTower Capital to another wallet.

The wallet is labelled as belonging to BlockTower Capital on on-chain data platforms Arkham Intelligence and Nansen. The wallet that received the funds is labeled by block explorer Etherscan as belonging to the Dexible exploiter.

The funds were then swapped for ether via the decentralized exchange SushiSwap and routed through sanctioned crypto mixing service Tornado Cash.

Dexible suffers exploit

On Feb. 17, Dexible said on Twitter that it had suffered an exploit in its newest smart contract. It said the attack took place in the early hours of that day. It said that 17 traders were affected with a few larger traders accounting for 85% of the stolen funds. It did not mention BlockTower Capital.

BlockTower Capital is an investor in TrueFi, the issuer of TrustToken. BlockTower Capital's wallet still contains $1.6 million ether and $38.1 million of various tokens, including MakerDAO's governance token MKR, Nexus Mutual's NXM, and some stablecoins.

TrustToken tripled in price on Feb. 16 after a stablecoin that it used to be connected to was withdrawn in large quantities from Binance by one of the exchange's clients.

BlockTower Capital did not immediately respond to a request for comment from The Block.