Renzo, an Ethereum liquid restaking platform, reported a security breach on July 22. According to a community alert, rogue actors hijacked the Renzo Protocol Discord server and posted malicious links, which appeared to be part of a phishing exploit. Renzo advised members to avoid interacting with any posts or messages until further notice. At the time of the announcement, it was unclear if any users suffered losses or if any funds were stolen.

Renzo’s native token, REZ, remained stable despite the breach, showing a slight 0.7% increase. Meanwhile, several other digital assets experienced modest declines.

🚨 Community Alert: Renzo Discord Server Breach
Our Renzo Discord server has been compromised by malicious actors. Please refrain from clicking any links posted in the server. At this time, treat all messages and links from server admins as potentially dangerous. Consider all…

Liquid restaking (LST) protocols, including Renzo, hold over $14 billion in user deposits, according to DefiLlama. These platforms gained popularity due to discussions around EigenLayer, a defi tool that allows users to earn additional yield and secure other networks using staked Ether (stETH).

Despite a 44% decline in the past 30 days, Renzo remains the second-largest liquid restaking provider in the market.

Security Challenges in DeFi

Renzo is one of many defi platforms facing security challenges. Last year, scammers stole nearly $1 million through a fake Across Protocol Discord server. In another instance, bad actors mimicked CertiK’s Discord link for a phishing campaign, resulting in over $6 million in stolen crypto. More recently, hackers targeted defi domains in a widespread attack on registrar Squarespace, affecting top protocols like Celer Network and Compound Finance before the issue was resolved.

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