Blockchain
Second Biggest Hack in Years Rocks Blockchain World
The last week has brought a lot of turmoil to the cryptocurrency market, with several major cryptocurrency platforms falling victim to various cyber attacks that have led to unprecedented losses of millions of dollars. From stolen user funds to contract exploits, the cryptocurrency community continues to bear the brunt of security vulnerabilities.
Here’s everything you need to know.
WazirX: a loss of $230 million
Indian stock exchange WazirX lost more than $230 million due to a violation on one of its multi-sig wallets, making it the second largest hack of the year. Initial assessment indicated that the wallet was compromised by attackers who began attempting the attack at least 8 days earlier.
WazirX, who was exposed in the previously described incident after importing the compromised wallet into their service known as Liminal Custody, reiterated that their system remained secure and that the problem lies in the contaminated devices at the WazirX company. The attackers were also able to lock up money in the process of extorting a large portion of the money by converting it into Ethereum.
LI.FI: Human error costs $12 million
On July 16, 2024, cross-chain bridge aggregator protocol LI.FI was hit by a security breach due to human error. An update on the incident revealed that approximately 153 wallets connected to LI.FI lost approximately $12 million in USDC, USDT, and DAI stablecoins.
The LI.FI team attributed this weakness to a failure to follow standard procedures during protocol changes, stressing the need for meticulous attention to detail in such processes.
Minterest: Flash Loan Attack Drains $1.4M
Cross-chain lending protocol Minterest was the victim of a flash lending attack on July 15, 2024. The incident, brought to light by Fuzzland co-founder Chaofan Shou, involved a complex flash lending technique that drained approximately $1.4 million. The attack was allegedly carried out on Ethereum-rollup Mantle, with the stolen funds funneled via Tornado Cash on Ethereum.
Ethena Discord Hack: Beware of Fake Links
On July 14, 2024, the Discord server of the Ethena blockchain project has been hacked. On-chain investigator ZachXBT warned users not to click on any links posted on the server while the issue was being resolved. The hacker posted a convincing message of appreciation for token holders, along with a fake link promising bonuses, which redirected to a fraudulent URL.
Ethena quickly released an official statement on X, expressing regret for any losses suffered by users. The post has since been deleted.
That concludes this week’s hack report. Stay tuned to Coinpedia for the latest updates on cryptocurrency security breaches in our weekly report!
See also: Liminal Claims Platform Security, Blames Compromised Signatures in $235M WazirX Hack