Web3 Community Platform Galxe Faces Security Breach
The website of the Web3 community platform Galxe experienced a security breach, causing it to be offline for an hour on Oct. 6. The company confirmed on X (formerly Twitter) that its Domain Name System (DNS) record was affected. Galxe warned users not to visit the domain until the situation was resolved. The website was eventually restored, but some users reported that it was blocked by Google.
Funds Stolen from Galxe Wallets
Crypto detective ZachXBT discovered that funds were being stolen from Galxe wallets. Even after the website came back online, the exploit continued to gather funds, totaling around $160,000 at 17:15 UTC. ZachXBT also suggested a connection between the Galxe attacker and the party responsible for attacking the Balancer protocol in September.
Balancer Protocol Attack and Losses
The Balancer protocol suffered two attacks in a month, with losses amounting to $238,000. The Balancer team referred to these incidents as social engineering attacks on their DNS server conducted by a crypto wallet drainer known as Angel Drainer. Blockchain security firm SlowMist speculated that the attacker may have ties to Russia.
Rise in Web3 Project Attacks and Losses
A report from security platform Immunefi revealed a significant increase in attacks on Web3 projects during Q3 2023 compared to the same period last year. Attacks rose from 30% to 76% year-on-year, resulting in losses of nearly $686 million. The biggest loss occurred during the Mixin hack on Sept. 25.
Hot Take: Web3 Security Breaches Highlight Urgent Need for Improved Safeguards
The recent security breaches faced by Galxe and the Balancer protocol underscore the pressing need for enhanced security measures in the Web3 space. As attacks on Web3 projects continue to rise, it is imperative for platforms to prioritize robust security protocols to protect user data, funds, and digital assets. This also highlights the importance of staying vigilant and taking necessary precautions when engaging with Web3 platforms. The industry must work together to develop and implement effective security solutions to safeguard the future of decentralized finance.
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