Risk of $20 million of users' funds at social crypto platform Friend.Tech due to security issues

Friend.Tech Users Report 234 ETH Hack Due to SIM Cloning

Several users of the social-fi crypto platform Friend.Tech recently fell victim to a hack resulting in the theft of 234 ETH (approximately $385,000). The hacker was able to clone their SIM cards, gaining access to their private keys and crypto wallets on Base. This incident follows earlier reports of compromised wallets on the platform.

Security Concerns Threaten Friend.Tech’s Credibility

Friend.Tech is a decentralized crypto application built on Coinbase’s layer-2. It allows users to tokenize and trade shares representative of their accounts. Despite its initial success, the platform is now facing security issues that could harm its reputation.

The recent hack involved SIM-swapping, a scam where the hacker clones the victim’s SIM card and exploits it to gain access to their social accounts. Friend.Tech has experienced similar attacks in the past, including abnormal transactions causing damage to users’ wallets.

Friend.Tech Responds with Security Update

In response to the hack, Friend.Tech quickly launched a new feature aimed at preventing compromise of users’ wallets. The update eliminates specific access options, such as phone numbers, reducing the risk of SIM-swapping attacks.

However, some users have reported difficulties accessing their Friend.Tech accounts after implementing the security update. One user shared concerns about potential ongoing compromises and inability to log into their profile.

Hot Take: Friend.Tech Faces Uphill Battle in Rebuilding Trust

The recent hacking incidents on Friend.Tech have raised concerns about the platform’s security and reliability. While the team has taken steps to address vulnerabilities and enhance user protection, there are still issues affecting users’ access to their accounts. Rebuilding trust will be crucial for Friend.Tech to regain credibility and ensure the safety of users’ funds. Continued efforts to strengthen security measures and provide prompt support to affected users are essential in overcoming this setback.