TechFlow reported on January 21 that Paradex, a derivatives trading platform, disclosed a hack targeting the Mithril trading bot system, resulting in approximately 57 user sub-keys being stolen. Sub-keys are limited-privilege keys that can execute trades on behalf of users but cannot withdraw funds from accounts—commonly used by third-party applications and bots.
Paradex has suspended all XP transfers and revoked all sub-keys associated with Mithril trading accounts. This incident only affects users connected to the Mithril trading bot. Paradex reminds users that granting sub-keys to any third-party bot, application, or platform means placing trust in their security measures to protect their accounts. Users should carefully consider potential risks before connecting to third-party services and only grant permissions to trusted platforms.
