Liquidity Management Protocol Gamma Loses $4 Million in Exploit
A liquidity management protocol called Gamma has suffered a loss of $4 million due to an exploit. The attackers conducted a price manipulation attack by creating multiple malicious contracts. This is just one of the many security incidents that have plagued the Web3 ecosystem in 2024.
How the Exploiters Attacked Gamma Smart Contracts
According to cybersecurity firm Cyvers, the attackers created around 40 malicious contracts to target Gamma smart contracts. They exploited vulnerabilities to artificially inflate asset prices, using market manipulation to their advantage. After conducting the attack, the hackers bridged USDT from the Arbitrum chain to Ethereum and swiftly swapped it for Ethereum (ETH) to avoid freezing of funds.
Gamma Exploiters’ Flow of Funds
The stolen funds from Gamma have not yet been moved or distributed. The exploiters funded a fresh wallet through a Tornado Cash deposit. The Gamma team is working with security experts to investigate the incident further and has temporarily shut down deposits while managing vaults normally.
Another Attack on Gamma
Gamma has also been attacked again by another hacker who managed to take 10 ETH (approximately $22,000). This attacker has interacted with the Kyber Networks exploiter, requesting ETH for gas.
2024 Already Plagued With Exploits and Hacks
It’s only been four days into 2024, and there have already been three recorded security incidents. Orbit Chain lost over $81 million, while Radiant Capital lost $4.5 million due to a smart contract breach. These incidents highlight the vulnerability of crypto projects in the face of hacking attempts.
Hot Take: Web3 Security Remains a Major Concern
The recent exploits and hacks targeting Gamma and other projects in the Web3 ecosystem demonstrate the ongoing security concerns in the crypto industry. As more value flows into decentralized protocols, attackers are finding new ways to exploit vulnerabilities. This highlights the importance of robust security measures and continuous monitoring to protect user funds and maintain trust in the ecosystem.
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