In a recent security incident, the DeFi protocol Balancer experienced a breach. As a result, approximately $238,000 worth of cryptocurrencies were stolen. The platform swiftly took action to protect its community’s assets. The advisory promptly advised users to avoid interacting with the Balancer protocol until they receive further updates.
Balancer, a decentralized finance protocol constructed on the Ethereum network, faced an attack when its frontend was compromised. It promptly alerted its user base on September 19 at 11:49 pm UTC regarding the incident. The platform emphasized the importance of abstaining from interacting with the Balancer user interface until resolving the issue.
While the investigation is ongoing to determine the full extent of the attack, it has yet to release an official statement regarding its potential impact on user funds. However, Cosme Fulanito, a Balancer contributor, has reportedly reassured the community by confirming the safety of Balancer’s vault and asserting its continued integrity. Fulanito says the burial remains unharmed and fully secure for user assets.
According to independent blockchain security firms, including PeckShield and blockchain analyst ZachXBT, estimations reveal that the breach resulted in the unauthorized withdrawal of at least $238,000 worth of cryptocurrency.
Balancer Faces Second Security Breach In A Month, Users Warned Of Scam Prompt
Some users who tried to access the Balancer website shared their experiences of encountering a prompt with malicious intentions aimed at draining their wallets. Among them, one user provided a cautionary insight:
When you visit the website, you will be asked to select the chain where your largest sum of money is stored. Once you confirm the scam transaction, your funds disappear.
Visitors to the Balancer website now encounter a cautionary warning sign, implemented as a proactive safety measure to shield them from possible harm. This recent incident signifies the second attack on Balancer within a month. Before this, on August 22, the platform issued a warning regarding a critical vulnerability, swiftly followed by an estimated $2 million exploit originating from the same exposure.
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The team behind the Balancer protocol acknowledged the exploit on August 27. While they emphasized that recent mitigation measures had significantly reduced risks, they made it clear that affected pools could not be paused. Users received advice to withdraw from affected LPs to protect their assets.
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