The company responsible for developing the decentralized “synthetic” dollar protocol, Ethena Labs (ENA), has spoken out about the shutdown on its website.
Ethena Labs has announced that it has temporarily shut down its front-end website following a domain name registrar account compromise. In a statement on the X platform on Wednesday, it warned users not to engage with any site or app claiming to be a front for Ethena.
Around the time the team made the announcement, the price of ENA fell by about 5%, from $2.32 to $2.18.
The Ethena domain registrar account was recently compromised and we have taken steps to disable the site until further notice. The protocol is unaffected and funds are safe.
Please do not interact with any site or application that claims to be an Ethena frontend.
Site is fixed, ENA price is rising
Hours after the team’s announcement, Ethena Labs’ website was back up and running. This, along with the bullish atmosphere in the market, has led to an increase in the ENA price.
According to CoinGecko data, ENA, which has increased by 10% in the last 24 hours, is trading at $0.2521 at the time of writing.
The company stated that the Ethereum-based protocol was not affected and funds were safe, but details of the attack have not yet been disclosed.
Rather than searching for vulnerabilities in projects' codes, these types of attacks aim to steal users' funds by having malicious actors replace the project's website with a malicious version.
For example, in July, websites for Compound Finance and Celer Network began redirecting users to phishing sites after domain name provider Squarespace was compromised. Similar attacks have also been seen on protocols such as Galxe, Velodrome, and Curve.
Ethena Labs is known as the developer of the DeFi native USDe stablecoin, but has not commented as of press time.
