Decentralized Finance Protocol Gamma Strategies Falls Victim to Hacking Attack
On January 4, the decentralized finance (defi) platform Gamma revealed that it had experienced a cybersecurity breach, resulting in the theft of digital assets worth several million dollars. To prevent further security breaches, Gamma has temporarily disabled all deposits into its “public-facing vaults.”
Exploiter Transfers Stolen Ethereum to Tornado Cash
A security firm discovered that the hacker responsible for the attack transferred or swapped the stolen digital assets. The hacker moved 800.5 ETH, valued at around $1.8 million, to another address. Moreover, the exploiter sent 1,000 ETH to the decentralized cryptocurrency tumbler, Tornado Cash.
Gamma Identifies Price Change Threshold as Vulnerability
Gamma’s team acknowledged that the attack was likely due to the price change threshold set too high. This allowed the attacker to manipulate prices and generate a disproportionate number of LP tokens. As a result, Gamma has decided to adjust all price change thresholds to a safer level and enforce third-party code review before reopening the deposit functionality. The team also pledged to assist affected users in recovering their funds.
Hot Take: Gamma Strategies Responds Swiftly to Cyber Attack
In response to the recent hacking attack, Gamma Strategies has taken immediate action to protect its users and prevent further breaches. By disabling deposits and addressing the vulnerability in the price change threshold, Gamma has demonstrated its commitment to the security of its platform. Going forward, the implementation of stricter safety measures, including third-party audits and adjustments to price change thresholds, will enhance the protocol’s defenses against potential attackers. Gamma’s proactive response and dedication to user recovery highlight their determination to maintain the trust and integrity of their decentralized finance ecosystem.
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