The Crypto Community Suffers Losses
The year has just begun, and the crypto community is already seeing millions of dollars’ worth of crypto lost to the bad actors. A Web 3 security platform, Quantstamp, in its series of threads, has concluded that $38.9M has already been lost to Web 3 security incidents so far in January 2024.
Gamma Strategies’ $3.4M Exploit
Gamma Strategies, a protocol for active liquidity management and market-making strategies on Ethereum, was hacked for a $3.4 million exploit on January 4. The attacker created many malicious contracts and executed the transactions. He then bridged the stolen funds to $ETH as $USDT and then immediately swapped them to $ETH to avoid being frozen. Currently, the attacker has 1535 ETH, which is around $3.4M.
Radiant Capital’s $4.5M Flash Loan Attack
Radiant Capital, a cross-chain lending protocol, temporarily halted its lending and borrowing markets on Arbitrum after uncovering a reported $4.5 million (2337 ETH) exploit linked to one of its newly created USDC Coin (USDC) markets. The incident was described as a flash loan attack stemming from a known rounding issue within the codebase. The attacker manipulated the index parameter (which later served as a denominator) to become extremely large.
Socket Protocol’s $3.3M Security Breach
Socket, a prominent blockchain interoperability protocol, reported a significant security breach resulting in over $3.3 million in losses. A vulnerability in user input validation drove the incident. Over 200 wallets using Bungee’s Socket route on Ethereum were affected, with a combined loss exceeding $3.3 million. Funds were swiftly converted into Ether, Polygon’s Matic token, wrapped versions of Bitcoin and Ethereum, and MakerDAO’s Dai stablecoin, showcasing the complexity of the attack.
Wise Lending Protocol’s Nearly Half a Million Stolen
Wise Lending, a prominent Web3 lending application and yield aggregator, fell victim to a flash loan attack due to contract vulnerability, which resulted in a loss of approximately $464,000.
Goledo Finance’s $1.7Million Loss
Goledo Finance, operating on Conflux eSpace, faced a significant security breach in its lending and borrowing market on January 28. The company identified irregularities within its lending pool and immediately suspended it to prevent further unauthorized access.
Conclusion
Though the start of the year ended with millions being lost, we all, as a community, hope that the rest of the year will flow smoothly for all crypto platforms. While the affected platforms struggle to recover the lost assets, other entities like centralized services and security agencies are combining to work to strengthen the crypto securities.
Hot Take
As the crypto world grapples with multiple security breaches and significant losses, enhanced security measures and the cooperation of various entities are crucial for ensuring the safety and integrity of the industry moving forward.
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