Gamma Strategies Investigating Security Incident
The Ethereum-based asset management protocol, Gamma Strategies, is currently investigating a security incident that may have resulted in the loss of at least 211.9 Ether (ETH).
Possible Security Incident Detected
On January 4, blockchain investigator PeckShield detected an exploit linked to Gamma Strategies with an estimated value of approximately $469,000.
Action Taken to Prevent Further Losses
In response to the incident, Gamma Strategies has disabled deposits in all public DeFi vaults while allowing withdrawals for users who need access to their funds. The protocol’s vaults will continue to be managed normally, but deposits have been temporarily halted until the issue is resolved.
Vulnerability in Accounting Mechanism
Security firm BlockSec reported a critical vulnerability in Gamma Strategies’ accounting mechanism. This inconsistency allows attackers to withdraw an excessive amount of tokens by exploiting the discrepancy between liquidity and shares.
Fake Twitter Account Impersonation
During the security incident, a fake verified Twitter account impersonating Gamma’s social media presence was discovered. The fake account attempted to redirect investors to a phishing website. Investors are advised to exercise caution and only interact with Gamma through official channels.
Hot Take: Cryptocurrency Sector Continues to Face Hacks and Losses
The breach at Gamma Strategies adds to the growing list of hacks in the cryptocurrency sector. In 2023 alone, the industry suffered nearly $2 billion in losses due to such incidents. Major breaches included Mixin losing $200 million, Poloniex losing over $120 million, Stake facing a $41 million theft, and KyberSwap reporting a revenue loss of $49 million. These incidents highlight the ongoing need for robust security measures in the cryptocurrency space.
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