Crypto Hack Weekly Report: WazirX, LI.FI, and Minterest Hit Hard

The last week has brought much unrest in the crypto market with several big crypto platforms being victims of various cyber attacks that have led to unprecedented losses in multi millions. From stolen user funds to contract exploits, the cryptocurrency community continues to bear the brunt of security vulnerabilities.

Here’s everything you need to know.

WazirX: A $230 Million Loss

Indian-based exchange WazirX lost more than $230 million due to a breach on one of its multi-sig wallets bringing it to the second largest hack of the year. The initial assessment indicated that the wallet was compromised by the attackers who began rehearsing for the attack at least 8 days before it.

WazirX, which the previously described incident exposed after importing the compromised wallet into their service known as Liminal Custody reiterated that their system has remained safe and the issue lies in tainted devices at WazirX firm. The attackers were also able to pin money in the process of extorting a large portion of the cash by converting it to Ethereum.

LI.FI: Human Error Costs $12 Million

On July 16, 2024, cross-chain bridge aggregator protocol LI.FI was hit by a security breach due to human error. An incident update revealed that around 153 wallets linked to LI.FI lost approximately $12 million in USDC, USDT, and DAI stablecoins.

The LI.FI team attributed the weakness to a failure in following standard procedures during protocol changes, emphasizing the need for meticulous attention to detail in such processes.

Minterest: Flash Loan Attack Drains $1.4 Million

Cross-chain lending protocol Minterest fell victim to a flash loan attack on July 15, 2024. The incident, brought to light by Fuzzland co-founder Chaofan Shou, involved a complex flash loan technique that drained about $1.4 million. The attack was reportedly carried out on Ethereum-rollup Mantle, with the stolen funds funneled through Tornado Cash on Ethereum.

Ethena Discord Hack: Beware of Fake Links

On July 14, 2024, the Discord server of blockchain project Ethena was hacked. On-chain investigator ZachXBT warned users not to click on any links posted on the server while the issue was being resolved. The hacker posted a convincing message of appreciation for token holders, along with a fake link promising bonuses, which redirected to a fraudulent URL.

Ethena quickly issued an official statement on X, expressing regret for any losses incurred by users. The post has since been deleted.

That concludes this week’s hack report. Stay tuned with Coinpedia for the latest updates on crypto world security breaches in our weekly report!

Also Check Out: Liminal Claims Safety Of Platform, Blames Compromised Signatures In WazirX $235M Hack