Wednesday, October 5, 2022

Curve Finance Suffers Network Breach Leading to $570,000 Loss

Decentralized finance (DeFi) liquidity protocol giant Curve Finance has been breached by hackers and $570,000 was stolen from its network. The malicious hackers made away more than half a million worth of Ethereum (ETH) with some of it frozen. According to the message posted on the Telegram channel, the source of the network breach has been identified and rectified.

Lefteris Karapetsas provided an analysis of how the hack was perpetrated. Based on his explanation, the perpetrators were able to clone the Curve site. Thereafter, they focused on the domain name system (DNS) to move in the direction of their IP which hosts the cloned site.

Furthermore, requests for approvals were initiated to which users authorized and got their wallets drained. Lefteris Karapetsas is a Berlin developer and founder of Rotki Solutions GbmH an open-source portfolio analysis tool.

The protocol operators alarmed users to instantly revoke any transaction that had been initiated and approved. In addition, the users were redirected to use the protocol’s exchange platform Curve. Exchange since it uses a different domain name system (DNS). This will be pending when the full operation is restored on the Curve Finance platform.

Crypto Network Breach Becoming Alarming

The stolen funds from Curve Finance are suspected to have been sent to FixedFloat, an instant automatic cryptocurrency exchange that utilizes the Lightening Network. FxedFloat released a tweet indicating that it had frozen 112 ETH priced at $191,088 of the hijacked funds. 

Specifically, the tweet read, “Our security department has frozen part of the funds in the amount of 112 ETH. In order for our security department to be able to sort out what happened as soon as possible, please email us: info@fixedfloat.com.

Breach on the blockchain network and its projects are clearly becoming incessant with no plans of putting the brakes on it. This Curve Finance attack is only one of the recent hacks that happened in August. Several others including the Nomad heist, which led to the loss of about $190 million, have been discovered.

More compelling is the role of the crypto mixers who assists in laundering these stolen funds. Tornado Cash was recently indicted by the U.S Treasury Department for aiding hackers in laundering billion in crypto.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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