Recent Cyber Attacks Shake Crypto Market: WazirX, LI. FI, Minterest, and Ethena Victims of Multi-Million Dollar Hacks

The past week has been a tumultuous one for the cryptocurrency market, with several major platforms falling victim to cyber attacks resulting in massive losses amounting to millions of dollars. From stolen user funds to exploits of contracts, the crypto community has once again been reminded of the importance of security awareness.

One of the most significant hacks of the week was the $235 million breach at Indian-based exchange WazirX. The exchange lost over $230 million due to a breach on one of its multi-sig wallets, making it the second largest hack of the year. The attackers had been preparing for the attack at least 8 days before executing it, highlighting the sophistication of the operation.

WazirX claimed that the issue stemmed from tainted devices within the firm and reiterated that their system remained secure. The attackers managed to extort a large portion of the stolen funds by converting them to Ethereum, further complicating the situation for the exchange.

Another notable hack was the $12 million breach at cross-chain bridge aggregator protocol LI.FI. The protocol was exploited due to human error, with 153 wallets linked to LI.FI losing stablecoins such as USDC, USDT, and DAI. The team at LI.FI attributed the breach to a failure to follow proper procedures when implementing changes to the protocol, emphasizing the need for strict attention to detail in such matters.

Additionally, the flash loan attack on cross-chain lending protocol Minterest resulted in a $1.4 million loss. The attackers utilized a complex flash loan technique to drain the funds, with the hack reportedly carried out on Ethereum-rollup Mantle. The funds were then laundered through Tornado Cash on Ethereum, making it difficult to trace the perpetrators.

Lastly, the Discord server of blockchain project Ethena was hacked, with the hacker posting a message of appreciation for token holders and promising bonuses through a fake link. Ethena quickly issued a statement regretting any losses incurred by users and took steps to address the issue.

As the crypto market continues to face security challenges, it is crucial for users and platforms alike to remain vigilant and prioritize security measures. Stay tuned with Coinpedia for the latest updates on crypto hacks in our weekly reports.