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- What – Cyberattacks on cryptocurrency platforms and exchanges.
- Why – unfortunately, the cyberattacks have become common now.
- What Next – Such incidents highlight the importance of implementing strong security measures and conducting regular audits to identify and mitigate vulnerabilities.
Allbridge, a popular cross-chain bridge that enables various blockchain networks to exchange crypto assets through liquidity pools, has recently fallen victim to a cyberattack. Shortly after the incident, Allbridge issued a statement via its official Twitter space to keep its community up to date with the latest developments.
According to the statement, the perpetrators of the cyberattack managed to steal a significant amount of funds from Allbridge’s liquidity pools on the Binance Smart Chain (BSC) through the use of a flash loan. Flash loans are a type of cryptocurrency loan that allows borrowers to borrow and repay funds within the same transaction. The attacker was able to manipulate Allbridge’s liquidity pool prices on the BSC using a flash loan and siphoned away the funds.
From Hack To Recovery: A summary Of Allbridge’s Journey So Far
On the first day of April, PeckShield, a blockchain security firm, alerted Allbridge about a potential attack on BUSD/USDT pools on the Binance Smart Chain (BSC). PechShield informed Allbridge via Twitter that an individual was manipulating the prices of BSC pools by posing as a swapper and liquidity provider.
As a result, Allbridge had to halt its bridge protocols temporarily and released a statement offering a bounty to the cybercriminal responsible for the attack. According to security firms PeckShield and CertiK, the hacker managed to steal approximately $550k worth of funds. However, Allbridge has not disclosed the exact amount of its loss.
In its statement, Allbridge also mentioned another hacker who has yet to contact the platform. The company urged the individual to come forward and discuss terms for returning the stolen funds.
In a separate development, before Albridge recovered any stolen funds, it announced that it was setting up a recovery fund to compensate victims of the hack. The company is committed to reimbursing its affected users and has taken steps to strengthen its security protocols to prevent future incidents.
Cyberattacks On Crypto Industry Surged In March
March 2023 saw a surge in the values of many cryptocurrencies, which led to increased hacking attempts on many crypto projects. According to PeckShield, there were 26 instances of malicious attacks in the industry during the preceding month. Cybercriminals stole over $211 million worth of cryptocurrency, marking a 500% rise from the $35.3 million stolen in February.
Euler Finance, a decentralized lending protocol on the Ethereum network, was hit the hardest, suffering 93% of the total stolen amount, amounting to $197 million. DeFi projects SafeMoon and ParaSpace also suffered substantial losses, with SafeMoon losing $8.7 million and ParaSpace losing $5.2 million to hackers, placing second and third on the list of victims.
The report also highlights the severity of the cybersecurity threat facing the cryptocurrency industry and the need for stronger security measures. The surge in attacks is likely due to the increased value of digital assets, which has attracted more cybercriminals to the industry. Companies in the sector must prioritize cybersecurity and take proactive measures to protect their assets and customers from potential breaches.
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