Some protocols have recently faced exploits, with DEX platform KiloEx and Phantom Wallet taking the frontline. Losses are, however, not as comparable as Bybit.
Decentralized Exchanges (DEX) KiloEx and Phantom Wallet recently suffered losses from crypto exploits. KiloEx suffered a $7 million hole and has suspended all DEX operations while investigating the attack. Phantom Wallet suffered a $500,000 loss in crypto.
Crypto Platforms at the Mercy of Hackers
Cyvers, a blockchain analytics platform, noted that the sophisticated attack on KiloEx exploited a vulnerability in its price oracle system, leaving the DEX users with multiple losses. The perpetrator leveraged Tornado Cash, the crypto mixer listed on the US OFAC sanction list a few years ago.Â
With this tool, he could execute transactions on the Base, BNB Chain, and Taiko networks.
Once in, he took advantage of a loophole in the platform’s price oracle system, allowing them to manipulate asset prices. Besides suspending operations, KiloEx has also extended invitations to its partners, requesting their assistance in investigating the exploit. As it stands, all hands are on deck to trace the stolen funds and blacklist the attacker’s wallet.
On the other hand, Phantom Wallet is being punished for the memecoin attack on its platform. On Monday, a lawsuit accused Phantom Technologies of exposing its users to security vulnerabilities in its crypto wallet. Unfortunately, the incident led to the theft of over $500,000 worth of Wiener Doge (WIENER) tokens from a developer’s account.
Phantom has strongly denied any allegations of wrongdoing and stated that it looks forward to demonstrating why the lawsuit should be dismissed.
Crypto Hacks and Exploits Plagues the IndustryÂ
These two unfortunate events confirm the growing occurrence of crypto hacks and exploits. This year alone, the crypto industry has recorded a number of scams and fraudulent activities. In January, Singaporean Web3 crypto-trading and investment platform Phemex informed its users of a compromise in its wallets. Crypto tokens worth $29 million were reportedly siphoned from hot wallets.Â
Reports teased that the stolen tokens were converted to Ethereum (ETH), which can be achieved with crypto mixers like Tornado Cash.Â
Not too long after, Bybit suffered a significant hack, looting $1.4 billion in Ethereum. In this case, the exploiter attempted to bridge the ETH to BTC through the Chainflip protocol. Regulators have advised crypto traders and investors to become more vigilant and apply caution when transacting.
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