DeFi Hacks Are on The Rise! Don’t Interact with Crypto For Now
On July 11, the crypto world saw a series of domain hacks affecting major decentralized finance (DeFi) platforms. Security investigator ZachXBT first reported that Compound Finance’s website was redirecting users to a phishing site.
ZachXBT warns users of Compound Finance website threat. Source: ZachXBT
Celer Network announced it had successfully thwarted an attack attempt, while DefiLlama developer 0xngmi shared a list of over 100 vulnerable protocols, including well-known names like Polymarket, dYdX, and Pendle Finance. Other prominent DeFi protocols also shared similar reports of hacks.
Source: X
CoinGecko founder Bobby Ong shed light on the root cause of the vulnerability. He explained that the recent forced migration of domains from Google to Squarespace resulted in the removal of two-factor authentication (2FA), leaving these domains exposed to potential attacks.
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Experts Advise “Not To Interact With Crypto” For Few Days
In response to the widespread security threat, industry experts are urging caution. Bobby Ong strongly recommends that users refrain from any crypto-related activities for the next few days.
Source: X
Best thing to do is to not interact with crypto and rest for the next couple of days until everything is resolved.
he said.
Security researcher Samzsun suggests that affected platforms consider transferring to alternative domain providers such as Cloudflare, Amazon Web Services Route 53, MarkMonitor, or CSC DBS.
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Looking to the future, Matthew Gould, founder and CEO of Web3 domain provider Unstoppable Domains (UD), proposes creating verified on-chain records for domains. He explains, “By creating verified on-chain records for domains, we can offer an extra layer of protection browsers and others can check to help fight these types of attacks.”
What Else Can Crypto Users Do For Now?
Above all, following these DeFi hacks, crypto users are advised to take several precautionary measures. Moreover, experts recommend avoiding interactions with crypto platforms until further notice to minimize risk. Primarily, users should stay informed through official channels of affected protocols and exercise extra vigilance against potential phishing attempts. Additionally, for added security, the use of hardware wallets is also suggested.
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