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Ethena Labs, a leading decentralized finance (DeFi) provider known for its synthetic dollar operations, experienced a major security breach on September 18.
Hackers compromised the front end of Ethena’s website, prompting an immediate response from the company.
Despite the attack, Ethena Labs assured users that the core blockchain infrastructure and customer funds remained secure and unaffected by the exploit.
The attack targeted the website’s domain registrar, causing Ethena Labs to temporarily deactivate the site while they address the issue.
The Ethena domain registrar account was recently compromised and we have taken steps to deactivate the site until further notice. The protocol is unaffected and funds are safe. Please do not interact with any site or application purporting to be the Ethena frontend.
In light of the breach, Ethena Labs has urged users to avoid interacting with any site or application claiming to be affiliated with Ethena.
They also advised users to disconnect their wallets and refrain from signing any transactions connected to the compromised website.
DeFi sector faces increasing cybersecurity threats
This incident underscores a troubling trend in the DeFi sector, where hackers are increasingly targeting web2 components used by web3 projects.
Recent attacks have not only targeted on-chain endpoints but also exploited vulnerabilities in web2 services such as domain registrars.
Ethena Labs joins a growing list of DeFi protocols that have faced security breaches, including Celer Network and Compound Finance, which also suffered attacks earlier in the year.
Security firm Blockaid has issued warnings to users who were connected to Ethena’s site during the exploit, advising them to take precautions to protect their assets.
MetaMask, a prominent DeFi wallet, has also flagged the compromised Ethena site as “deceptive,” cautioning users against fake MetaMask sites attempting to exploit the situation to steal sensitive information such as seed phrases and passwords.
Surge in crypto hacks in 2024
The attack on Ethena Labs is part of a broader surge in cryptocurrency-related hacks, which have resulted in over $1.4 billion in losses so far in 2024.
The sharp increase in cryptocurrency theft is attributed to a few large-scale attacks, with the top five hacks accounting for 70% of the total amount stolen in the first half of 2024.
The largest heist this year involved more than $300 million worth of bitcoin stolen from the Japanese crypto exchange, DMM Bitcoin.
TRM Labs identified private key and seed phrase compromises as the primary attack vectors in 2024.
Other notable recent incidents include the $27 million exploit of the Penpie protocol on September 3, 2024, and a $6 million hack of decentralized finance platform Delta Prime.
As the DeFi landscape continues to evolve, maintaining robust security measures remains a critical priority for protocols and users alike.
The increasing frequency and scale of cyberattacks highlight the need for enhanced vigilance and protective strategies in the cryptocurrency space.
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