Decentralized Exchanges Warn Users of Security Breach
Velodrome and Aerodrome, two decentralized crypto exchanges, have issued warnings to their users about a front-end security breach on their websites. They have advised users not to interact with their platforms until further notice.
Details of the Breach
The Velodrome team took to Twitter to inform users that their website’s frontend had been compromised. They assured users that they were investigating the issue and would provide updates soon. The same warning was posted on Aerodrome’s social media account.
DNS Attack
The security breach appears to be a domain name system (DNS) attack targeting both exchanges’ official websites. DNS is a crucial protocol for the functioning of websites. In this type of attack, hackers gain control of a site and redirect users to a phishing site linked to a malicious contract in order to steal funds.
Funds Drained into Hacker’s Addresses
An on-chain analyst identified two specific addresses where funds from Aerodrome and Velodrome were being sent. At the time of writing, approximately $70,000 worth of crypto assets had been drained into these addresses.
Alternate Solution by Aerodrome
Aerodrome suggested an alternate solution for its users: accessing their platform only through its decentralized frontend at http://aero.drome.eth.limo. They assured users that protocol funds were safe and contracts unaffected.
Impact on Velodrome and Aerodrome
Velodrome is the second-largest decentralized exchange protocol on the OP Mainnet, with over $139 million in total locked value. Aerodrome holds over $63 million in funds and is the largest protocol on Base in terms of total value locked (TVL).
Similar Attacks in the Industry
Last month, Galxe, a Web3 credentials and rewards platform, experienced a significant DNS attack. The project has pledged to refund over $396,000 to affected users and will add an additional 10% as a gesture of goodwill.
Hot Take: Protecting Users from Security Breaches
Front-end security breaches can have serious consequences for users of decentralized exchanges. It is essential for platforms to prioritize the security of their websites and promptly address any vulnerabilities. Users should exercise caution and follow the instructions provided by the exchanges during such incidents. It is also advisable to use alternate access methods, such as decentralized frontends, when available. By staying informed and taking necessary precautions, users can better protect themselves from potential security breaches in the crypto space.
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