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Hackers Attack Synthetic Dollar Issuer Ethena: Core Blockchain Infrastructure Uncompromised
On September 18, bad actors successfully breached the website of decentralized finance service provider Ethena Labs. The team’s alert explained that only its frontend UI was impacted, and funds were neither at risk nor drained.
As of this writing, attempts to ascertain how hackers accessed the project’s website management console have gone unanswered. Users were advised to avoid links tied to the project and disconnect wallets until further notice.
The Ethena domain registrar account was recently compromised and we have taken steps to deactivate the site until further notice. The protocol is unaffected and funds are safe. Please do not interact with any site or application purporting to be the Ethena frontend.
Ethena is one of the largest synthetic dollar operators in DeFi. Its collateralized, dollar-tied token has a $2.6 billion supply, most of which is issued on Ethereum. However, a new player could challenge the protocol’s market share in the coming months. Crypto market maker DWF Labs announced that work on its synthetic dollar offering is progressing before the design stage.
Security Issues in DeFi
Ethena and several other DeFi protocols have been subject to compromises across different layers. In some cases, hackers attacked on-chain endpoints and exploited smart contract bugs to steal funds.
Conversely, bad actors have increasingly targeted web2 services employed by web3 startups. For instance, Ethena’s domain registrar was compromised, similar to attacks on websites owned by Celer Network and Compound Finance in July.
Common Attack Methods
The most common attack often involves launching phishing campaigns through hijacked social media pages. Earlier this month, hackers gained access to social media accounts managed by layer-1 blockchain Near Protocol and Trump family members, to name a few.
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