Balancer Reported That A Social Engineering Attack Resulted In $238,000 In Crypto Losses

Key Points:

• Balancer lost $238,000 in a recent DNS attack linked to social engineering.
• Its DAO promptly responded, regained control, and secured user subdomains.
• The attack’s complexity raises security concerns, with potential ties to Russia under investigation.

In a recent incident, Balancer, the automated market maker operating on the Ethereum (ETH) blockchain, faced a security breach believed to be the result of a social engineering attack on its DNS service provider.

Shortly after the initial warning of the attack, its decentralized autonomous organization (DAO) sprang into action, addressing the DNS attack and initiating efforts to restore the user interface (UI). After approximately eight hours, the project successfully regained control of its domain, ensuring the safety of its subdomains “app.balancer.fi” and “balancer.fi” for users once again.

This attack marks the latest incident of a decentralized finance protocol falling victim to a frontend assault. According to blockchain investigator ZachXBT, the attacker made off with approximately $238,000 in cryptocurrency.

Previous reports revealed that visitors to the website were prompted to approve a malicious contract from their non-custodial wallets, illustrating the extent of the breach’s sophistication.

MistTrack, an online publication, detailed the attack’s complexity, involving the protocol and an organization known as AngelDrainer. The fees generated from the Balancer attacker’s actions were traced back to AngelDrainer, showcasing a multi-pronged strategy that included BGP hijacking, coerced transfers, and laundering through THORChain, a cross-chain decentralized liquidity network.

As the investigation unfolds, there are indications of potential ties between the Balancer attackers and Russia, suggesting a broader network of cybercriminals. The international nature of such attacks presents challenges in both addressing and preventing future incidents, emphasizing the need for heightened security measures within the cryptocurrency space.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.