Ethena Labs Website Compromised in Front-End Exploit

The front-end of Ethena Labs’ website has been hacked. In a statement yesterday on X, the company informed users that its domain registrar account was compromised, leading to the temporary deactivation of the site.

Ethena Labs cautioned users against interacting with any websites or applications claiming to be Ethena. However, the company clarified that the Ethena protocol was not impacted, stating, “All customer funds remain safe.”

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 Labs (@ethena_labs) September 18, 2024

Following the breach, security firm Blockaid advised users who were connected to the website at the time of the exploit to avoid signing any transactions. “We strongly urge Ethena users to disconnect their wallets immediately,” Blockaid said in its warning.

🚨 URGENT: We have detected a potential frontend attack targeting @ethena_labs.

If you're connected, please refrain from signing transactions and disconnect your wallet immediately. We’re working closely with affected partners. More updates soon. pic.twitter.com/Ub8tra0X46
— Blockaid (@blockaid_) September 18, 2024

MetaMask, the decentralized finance wallet, also warned about the exploit separately. It said that fraudulent sites have emerged attempting to use the Ethena breach to steal seed phrases and passwords from unsuspecting users. The company flagged the Ethena website as deceptive and recommended users refrain from visiting it until the situation is resolved.

Research by cybersecurity firm Immunefi revealed that cryptocurrency hacks had resulted in losses exceeding $1.2 billion by the end of August 2024. This represents a 15.5% increase in malicious activity compared to the same period in 2023. The report attributes these losses to a range of exploits across the crypto space.

On Sept. 3, 2024, the Penpie protocol, which is built on Pendle, suffered a security breach resulting in the loss of $27 million. Another significant attack occurred when Delta Prime, the decentralized finance platform, was hacked, losing $6 million. According to Cyvers cybersecurity firm’s CTO, Meir Dolev, “Hackers took control of the wallet, which is the admin of Delta Prime proxy contacts.” Once the attackers accessed the admin wallet, they modified contracts, draining funds from Delta Prime pools.

Onchain analyst ZackXBT suggested that the Delta Prime hack could be linked to North Korean hackers, noting the rapid conversion of stolen stablecoins into Ether. The funds were moved following the manipulation of the platform’s contracts after the private key exploit.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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