Recent events on Paradex have raised fresh questions around paradex security, third-party automation tools, and how fast exchanges react when systems are breached.
Paradex confirms Mithril Trading Bot breach
The derivatives platform Paradex has confirmed a security incident involving the Mithril Trading Bot, after an attacker accessed Mithril’s internal systems and exposed about 57 user subkeys. According to Wu Blockchain, Paradex stated that the exploit was limited to Mithril’s infrastructure and did not compromise the core exchange.
Moreover, Paradex stressed that the affected subkeys carried restricted permissions. These keys could execute trades on behalf of users but could not withdraw or move funds from user accounts. This design choice effectively ring-fenced capital, even though automated trading access was briefly at risk.
In response, the exchange paused all XP transfers and swiftly revoked every subkey associated with Mithril-linked trading accounts. That sa
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