Incidents

CoinEx Suffers $52.8 Million Security Breach Across Multiple Chains

Summary # On September 12, 2023, CoinEx, a crypto trading platform operating on various chains, experienced a massive security breach due to a private key compromise. The attacker exploited CoinEx’s hot wallets and extracted approximately $52.8 million worth of assets across 9 different chains. The stolen funds were transferred to the attacker’s addresses and then laundered via distribution between multiple addresses and smart contracts. Lazarus Group is suspected to be behind the theft, as multiple sources have confirmed an onchain connection between Stake. ...

Stake.com Suffers $41.4 Million Security Breach

Summary # On September 4, 2023, Stake.com, a crypto gambling protocol offering casino games and sports betting, was targeted by the Lazarus Group (also known as APT38), a group of DPRK cyber actors. The group exploited access control vulnerabilities and extracted approximately $41.4 million worth of various digital assets from the platform’s hot wallets across Ethereum, Binance Smart Chain (BSC), and Polygon networks. Stake.com reassured users that their funds were safe, and all other wallets remained operational. ...

Exactly Protocol Bridge Suffers $7.6 Million Security Breach

Summary # Exactly Protocol on Optimism faced a critical security breach on August 18, resulting in a loss of around $7.6 million. The attackers exploited a vulnerability by manipulating market address inputs, allowing them to bypass key security checks within the protocol. This manipulation granted them unauthorized access to execute a deposit function maliciously, leading to the theft of a substantial amount of USDC from users. Attackers # The identity of the hackers who attacked Multichain is unknown. ...

Zunami Protocol lost $2.16 million in a flash loan attack.

Summary # On August 13, 2023, Zunami Protocol, a prominent DeFi platform on Ethereum, was compromised through a sophisticated flash loan attack, resulting in a significant loss of 1,178 ETH, approximately valued at $2.16 million. Central to this exploit was a vulnerability within the platform’s contract that allowed for the manipulation of the UZD token’s balance. By leveraging a flash loan the attacker was able to artificially inflate the value of the UZD token. ...

Steadefi Loses $1.14 Million to Deployer Address Compromise

Summary # Steadefi, a yield farming platform on Arbitrum and Avalanche, reported a loss of $1.14 million due to a compromised deployer address. The exploit allowed the attacker to assume control over the platform’s vault contracts, leading to the unauthorized borrowing of all available funds. The total value locked (TVL) in Steadefi dropped from over $2 million to almost $0 as a result. The funds were converted to approximately 625 ETH and landed in Tornado Cash. ...

Several Liquidity Pools Exploited for Nearly $60 Million

Summary: # On July 30, a hackers drained approximately $60 million from liquidity pools that decentralized exchanges uses to offer exchange of tokens. Affected protocols include CurveFi, MetronomeDAO, JPEGd and Alchemix. Curve, as biggest funds lost from the breach, ranks among the most esteemed and reliable DEXes and relies on automated market makers in much the same way as Uniswap. Though it is still functioning, Curve has seen an exodus of funds since the hack. ...

AlphaPo Hot Wallets Breached Resulting in a Loss of Over $60 Million

Summary # AlphaPo, a crypto payment platform that processes payments for various gambling services, suffered a loss of more than $60 million due to a private key compromise that affected their hot wallets across Bitcoin, Tron, and Ethereum. The stolen funds were transferred to other blockchains, including Avalanche and Bitcoin. The funds on Bitcoin were deposited into the crypto mixer service Sinbad. The loss also includes the losses suffered by CoinsPaid, an entity related to AlphaPo. ...

Rodeo Finance Exploit on Arbitrum Leads to $888,000 Loss

Summary # On July 11, 2023, Rodeo Finance on Arbitrum was breached, losing around 472 ETH ($888,000) due to an attacker exploiting the TWAP Oracle. By manipulating the oracle’s price calculation, through a “sandwich” attack, they inflated asset prices. This allowed them to mislead the protocol, borrow against the inflated prices from the USDC Pool, and conduct swaps to profit from the manipulated price discrepancies, effectively bypassing Rodeo’s security checks. ...

Arcadia Finance Suffers $455,000 Security Breach

Summary # On July 10, 2023, Arcadia Finance, a DeFi protocol on Ethereum and Optimism, experienced a significant security breach due to vulnerabilities in its smart contract. The incident resulted in a financial loss of approximately $455,000. The breach was due to inadequate security measures in the protocol’s contract, allowing an attacker to manipulate the system for unauthorized asset transfers. Attackers # The identity of the hackers who attacked Arcadia Finance is unknown. ...

Themis Protocol Suffers $370,000 Loss in Exploit

Summary # On June 27, 2023, Themis Protocol, a decentralized lending and borrowing platform on the Arbitrum One chain, fell victim to a sophisticated exploit involving a flawed price oracle, leading to a loss of approximately $370,000. The attacker manipulated the Balancer LP token price by exchanging tokens within the Balancer pool, thus affecting the oracle’s valuation of the pool’s tokens. By utilizing flash loans and a series of calculated transactions, the exploiter was able to inflate the price of the Balancer LP tokens and borrow assets far exceeding their collateral, eventually laundering a portion of the stolen assets through Tornado Cash. ...