Fraudsters Breach Security of Socket Cross-Chain Protocol
A security breach in the Socket protocol has resulted in the loss of millions of dollars in cryptocurrency. The breach occurred when a hacker exploited a verification user input to steal funds from users. The project’s microblog revealed details about the hack. PeckShield, a blockchain security company, confirmed that at least $3.3 million was affected by the hack. The vulnerability was due to incomplete verification of user input, which allowed the hacker to steal funds from users who had approved the vulnerable SocketGateway contract on the site.
Developers Take Action and Promise to Return Funds
Upon discovering the issue, the developers promptly suspended the protocol and fixed the smart contracts that led to the exploit. The Socket team has assured victims that they will receive their funds back. As of now, Socket is operational again and bridging on partner frontends has resumed.
Rise in Crypto Hacks Continues
This incident adds to a string of security breaches within the cryptocurrency industry this year. In January, Radiant Capital Lending Protocol was hacked for 1,900 ETH worth approximately $4.5 million. Another major hack resulted in an outflow of $81.5 million across multiple cryptocurrencies from Orbit Bridge, a gateway bridge protocol.
Hot Take: Crypto Industry Faces Ongoing Security Challenges
The recent security breach in the Socket cross-chain protocol highlights the ongoing challenges faced by the cryptocurrency industry in terms of security. With hackers constantly looking for vulnerabilities, it is crucial for projects to prioritize robust security measures and thorough verification processes to protect user funds. While developers took swift action to address the issue and promise to return funds, these incidents serve as reminders for users to exercise caution and due diligence when engaging with crypto platforms.
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