Ethereum-Based DeFi Protocol Balancer Investigating Frontend Attack
Balancer, a decentralized finance (DeFi) protocol based on the Ethereum blockchain, has issued a warning to its users about an ongoing investigation into a suspected attack on its frontend. The details of the attack and its source are still being determined.
The Balancer community was notified on September 19 at 11:49 pm UTC to refrain from interacting with the platform’s user interface until further notice. The official Twitter account for Balancer confirmed the attack and urged users to avoid using the UI.
“The balancer frontend is under an attack. The issue is currently under investigation. Please do NOT interact with the balancer UI until further notice!”
— Balancer (@Balancer) September 19, 2023
Possible Compromise of User Funds Still Uncertain
While Balancer is still determining the specifics of the attack, it has not yet confirmed whether user funds have been compromised. However, a contributor to Balancer, Cosme Fulanito, stated on Twitter that the Balancer vault remains unaffected by the attack.
Blockchain security firms PeckShield and analyst ZachXBT have provided initial estimates of approximately $238,000 in stolen cryptocurrencies since the attack began.
Users have reported encountering a malicious contract that drains their wallets when trying to interact with the platform. DeFi sector analyst DeFi Hanzo explained that users are prompted to change their chain and then experience a scam transaction that results in their money being stolen.
Second Attack on Balancer in a Month
This incident marks the second attack on Balancer within a month. On August 22, a critical vulnerability was announced, leading to an estimated $2 million exploit. Balancer took measures to minimize the risk but advised users to withdraw from affected Liquid Pools (LPs) as pausing the affected pools was not possible.
Hot Take: Balancer Urges Caution Following Frontend Attack
Balancer, a prominent DeFi protocol, has warned its users about a suspected attack on its frontend and advised against accessing the platform’s user interface until further notice. While the details of the attack are still being investigated, no confirmation has been made regarding the compromise of user funds. Blockchain security firms estimate that approximately $238,000 in cryptocurrencies may have been stolen so far. Users have reported encountering a malicious contract that drains their wallets when interacting with the platform. This is the second attack on Balancer in a month, highlighting the need for heightened security measures in the DeFi space.
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