Report: Security Alerts Bypassed by Hackers Through Exploitation of New Feature

CREATE2 Exploit in Ethereum Network

If you have been following the news in the crypto world, you might have come across reports about hackers using the CREATE2 opcode on the Ethereum network to exploit security weaknesses in certain wallets. A recent revelation by blockchain security company Scam Sniffer detailed this concerning trend.

Hackers Bypassing Security Measures

The CREATE2 opcode was initially designed to predict a contract address before deployment, and it is frequently used by Uniswap, a popular decentralized exchange. However, cybercriminals are exploiting this feature to bypass security checks in investor wallets. By generating temporary new addresses with malicious signatures using CREATE2, hackers can deploy a contract at a predicted address and make unauthorized asset transfers.

Substantial Losses Due to Exploits

According to Scam Sniffer’s report, these bad actors have managed to siphon over $60 million from approximately 99,000 victims within the last six months. Another group of hackers has also utilized the same technique to steal nearly $3 million worth of assets from 11 victims since August. This ongoing cycle of detection and counter-detection in the crypto space poses a significant risk to users.

Rise in Crypto Scams

Besides hacks, crypto scams continue to be a significant concern for investors. A recent report by FootPrint x Boesin highlighted that scams resulted in an asset loss of $184.17 million, accounting for 28% of total losses recorded by investors in the first half of 2023. Scam Sniffer also reported two major scam incidents in the last 48 hours, resulting in a combined loss of $468,000 worth of assets.

Hot Take: Protecting Your Crypto Assets

These reports serve as a stark reminder that protecting your crypto assets should be a top priority. With the increasing number of exploits and scams in the cryptocurrency ecosystem, it’s crucial to stay vigilant and verify every transaction meticulously. Enhanced security measures and awareness are essential components in safeguarding your investments.