Layerswap: Refunding Stolen Funds After Domain Hijack and Phishing Attack ๐ฅ
Layerswap, a platform that facilitates cryptocurrency transfers between centralized exchanges and layer-2 blockchains, recently experienced a domain hijack incident resulting in a phishing scam. This attack led to the theft of approximately $100,000 worth of crypto assets from around 50 users. However, in a commendable response, Layerswap has vowed to fully refund the stolen funds to affected users. As compensation for the inconvenience caused by the attack, they will also offer a 10% bonus.
Domain Hijack and Phishing Attack on Layerswap
The incident occurred on March 20th at around 7:40 PM UTC when malicious actors compromised Layerswapโs GoDaddy account. By gaining control over the domainโs DNS settings, the attackers were able to redirect traffic to a phishing site whenever users tried to access Layerswapโs website. Additionally, they changed the domain ownerโs email address, granting them complete control over DNS and associated email services.
Despite their attempts to reset Layerswapโs X account password at 7:42 PM UTC, the attackers were unable to access the account due to the companyโs implementation of two-factor authentication (2FA). However, this compromise of the domain allowed them to display a phishing site to users, resulting in approximately 50 individuals falling victim to the scam and collectively losing around $100,000 worth of assets.
Prompt Response and Delays in Assistance
Upon discovering the breach at 7:45 PM UTC, Layerswap immediately contacted GoDaddy Support for assistance. However, they encountered delays in response. Initially, GoDaddy indicated a 12-hour response time which was later reduced to 3 hours. Unfortunately, this delayed response from the domain registrar allowed the hacker to maintain control of the domain for an extended period.
At approximately 10:21 PM, Layerswap received instructions from GoDaddy on resetting the account password. However, when they attempted to do so, they discovered that the account was locked and that the attackers had once again altered the associated email address. Fortunately, by 11:07 PM UTC, Layerswap regained access to their GoDaddy account, enabling them to reverse the hackerโs modifications and regain control of their domain.
Refunding Affected Users and Offering Compensation
To address the impact on affected users, Layerswap has taken proactive measures. They are fully refunding the stolen funds to those affected by the security breach. In addition, they will provide a 10% bonus as compensation for the inconvenience caused. This demonstrates Layerswapโs commitment to its users and their satisfaction.
Crypto Scammers Remain Active: $46 Million Lost in February ๐ก๏ธ
In a report by Scam Sniffer, an anti-scam solution company, it was revealed that cryptocurrency scams led to a substantial loss of $46.86 million in February 2024. During this period, over 57,000 individuals fell victim to various phishing scams. Interestingly, there was a significant 75% decrease in victims losing over $1 million compared to January 2024.
The Ethereum mainnet accounted for more than $36.2 million of the total losses in February, making up 78% of all exploits during this time. Additionally, Ethereum blockchain users comprised the largest group of victims with a total of 25,029 individuals affected.
On February 15th, a single day saw more than $6.2 million in digital assets lost due to scams. This spike in scam activities highlights the ongoing threat posed by crypto scammers.
In March, ParaSwap, a decentralized finance (DeFi) aggregator, faced a significant vulnerability in its newly deployed Augustus v6 contract. Although ParaSwap took immediate action to roll back the v6 contract and alerted users to take necessary precautions, a hacker still managed to cash out funds worth approximately $24,000 from four different addresses. This incident affected 386 addresses, prompting the protocol to urge users to report any unidentified loss of funds during the initial investigation.
๐ฅ Hot Take: Layerswap Recovers and Restores Funds ๐ฐ
In response to the domain hijack and phishing attack, Layerswap has shown its commitment to its users by promptly refunding the stolen funds and offering compensation for the inconvenience caused. Their proactive approach sets an example for other platforms in dealing with security breaches.
As the crypto industry continues to evolve, it is crucial for users to remain vigilant against scams and phishing attempts. By staying informed and implementing best security practices, individuals can protect themselves from falling victim to such attacks.
Wyatt Newson emerges as a luminary seamlessly interweaving the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the dynamic canvas of digital currencies, Wyatt’s insights resonate like vibrant brushstrokes, capturing the attention of curious minds across diverse landscapes. His ability to untangle intricate threads of crypto intricacies harmonizes effortlessly with his editorial mastery, transmuting complexity into a compelling narrative of comprehension.