Polter Finance loses $7M due to a smart contract exploit on Fantom, highlighting security risks in DeFi cross-chain operations.
Phishing-related losses in 2024 top $800M, with hackers using sophisticated tools to drain wallets and exploit vulnerabilities.
The rise of advanced phishing tools like Angel Drainer and Inferno Drainer signals an evolving threat in crypto.
Crypto lending and trading platform Polter Finance has reported a devastating $7 million loss due to a smart contract vulnerability. The hack occurred on the Fantom blockchain, which powers Polter’s operations. The attacker used Tornado Cash, an Ethereum-based anonymity platform to exploit this weakness.
https://twitter.com/CyversAlerts/status/1858388202102685892 How the Hack Unfolded
The attacker, using Tornado Cash to obscure their identity, transferred funds to the Fantom network. They used the anonymity and interoperability of the blockchain to launch their malicious attack. The funds were drained after the exploit targeted a critical loophole in Polter Finance’s system. The attack was recorded on FTMScan, highlighting vulnerabilities that allowed the attacker to siphon off millions.
Besides Polter Finance, the hack shows the mounting security threats in the DeFi sector. Cross-chain operations, in particular, have become prime targets for sophisticated attackers. Such exploits are more concerning as blockchain technologies evolve and merge with privacy-preserving platforms.
The Surge in Phishing Attacks
Polter Finance’s breach comes amid an alarming rise in phishing attacks across the blockchain industry. According to CertiK, phishing-related losses in 2024 have already surpassed $800 million. This surge in attacks is largely attributed to the increasing complexity of hacking techniques. Methods like wallet-draining schemes and address poisoning are becoming more advanced, exploiting user trust and technical vulnerabilities.
In 2024, CertiK recorded 247 phishing incidents, with the first quarter seeing 82 cases. Financial losses in the second quarter reached a staggering $433 million, while the third quarter accounted for $343 million in damages. Although fewer cases have been reported in the fourth quarter, the financial toll remains high, threatening further instability in the blockchain ecosystem.
Growing Threats in the Crypto Space
Hackers have continued to refine their tactics, combining traditional methods with newer tools like Angel Drainer and Pink Drainer. These techniques often target permissions granted by unsuspecting users, allowing malicious actors to drain wallets. Furthermore, Angel Drainer’s acquisition of Inferno Drainer signals the rise of more potent phishing campaigns, potentially endangering even more users.
The Department of Homeland Security (DHS) has actively intervened, disrupting hundreds of crypto scams. Since 2021, DHS has reclaimed billions in cryptocurrency and stopped ransomware attacks, preventing massive damage.
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