Crypto Hack Weekly Report: Years Second Largest Hack Shakes the Blockchain World

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The last week has brought much unrest in the crypto market with several big crypto platforms being victims of various cyber attacks that have led to unprecedented losses in multi millions. From stolen user funds to Exploits of a contract, the Cryptocurrency community is always on the receiving end of the impact of weakness on security awareness. 

The $ 235 million WazirX hack; firm struggles to stay put

Indian-based exchange WazirX lost more than $230 million due to a breach on one of its multi-sig wallets bringing it to the second largest hack of the year. The initial assessment indicated that the wallet was compromised by the attackers who began rehearsing for the attack at least 8 days before it. 

WazirX, which the previously described incident exposed after importing the compromised wallet into their service known as Liminal Custody reiterated that their system has remained safe and the issue lies in tainted devices at WazirX firm. The attackers were also able to pin money in the process of extorting a large portion of the cash by converting it to Ethereum. 

LI. FI blames human error for its $12 million hack

The cross-chain bridge aggregator protocol  LI. FI was attacked on the security front on July 16, 2024. The protocol was exploited because of human error as the firm said in a incident  update which affected the system. Around 153 wallets linked to LI. FI lost approximately 12 million USDC, USDT, DAI stablecoins. 

The LI. FI team claimed that this weakness originated from a failure to follow the usual procedures when implementing change to the procedure, stressing a point that changes in protocol need excellent attention. 

Flash loan attack on Minterest protocol leads to $1.4 million loss

One of the cross-chain lending protocols, Minterest, became a victim of the flash loan attack on the 15th of July 2024. This attack was bought to notice by the co-founder of Fuzzland, Chaofan Shou, who said that the hackers employed a complex flash loan technique that saw a drain of about $1.4 million. 

Hack were reportedly carried on Ethereum-rollup Mantle. The funds for the attacker were received through Tornado Cash on Ethereum.

Ethena’s Discord Hack

On July 14th 2024, the Discord server of Ethena, a blockchain project, was hacked. It was reported by on-chain investigator ZachXBT, who asked users not to click any links posted on the site while the issue persisted. The hacker then posted a realistic message of appreciation for the token holders and a promise of bonuses from a fake link that redirected to a fake URL. 

Ethena quickly issued an official statement in a post on X regretting any losses that users incurred from the hack and the post has been since deleted.

That is all for this week’s hack report. stay tuned with Coinpedia as we bring you the latest hacks of the crypto world in our weekly report every week!

Also Check Out: Liminal Claims Safety Of Platform, Blames Compromised Signatures In WazirX $235M Hack