Ethena Labs warns users about a front-end exploit that compromised its website. Although customer funds are safe, users are urged to be cautious of phishing scams.
On September 18, 2024, the Ethena website was the target of a front-end exploit that compromised its domain registrar account, leading to a security breach. Ethena Labs, the company behind the decentralized finance platform, issued an urgent warning to users, advising them to avoid interacting with any sites or applications claiming to be Ethena until the situation is resolved.
The Attack
Ethena Labs posted on social media that the attack had affected the website’s domain registrar account, but assured clients that the Ethena protocol itself was not compromised. Despite the website being taken down, user funds remain safe according to the company’s statement.
The exploit appeared to be a domain hijacking attack, commonly known as a front-end attack, where hackers redirect the official website’s domain to a malicious copy of the platform. Users who interacted with the compromised site were at risk of falling victim to phishing attempts or other forms of social engineering attacks.
Warning for Users
In response to the breach, security firm Blockaid warned users who were connected to the compromised website at the time of the attack to disconnect their wallets immediately and avoid signing any transactions. The MetaMask wallet provider also issued a warning, flagging the Ethena website as a deceptive site. MetaMask users were advised to be particularly vigilant, as the exploit could potentially be leveraged by hackers to steal seed phrases and compromise passwords.
In addition, MetaMask users were cautioned about fake MetaMask sites that may have been used to exploit the Ethena hack for further fraudulent activity. The warning underscores the increasing risks for users interacting with compromised decentralized finance platforms.
A Growing Trend of Crypto Hacks in 2024
This incident comes amid an alarming rise in crypto-related hacks in 2024. According to a report from Immunfi, losses from crypto hacks have surpassed $1.2 billion by the end of August, marking a 15.5% increase in malicious activity compared to the same period in 2023.
Just days before the Ethena hack, the Penpie protocol, a platform built on Pendle, lost $27 million in a similar exploit. The attack highlighted the vulnerabilities present in decentralized finance (DeFi) platforms that lack robust security measures.
More recently, Delta Prime, another DeFi platform, was hit with a $6 million hack in early September. The hack was traced to a private key exploit, where attackers gained control over the wallet and altered smart contract conditions, draining the platform’s pools. The stolen funds were then converted into Ether (ETH). Investigators have speculated that the Delta Prime hack could be linked to North Korean hackers, a notorious group known for targeting the crypto space.
Conclusion
The Ethena hack serves as a stark reminder of the growing risks within the crypto and DeFi space, where hacking incidents are becoming more frequent and sophisticated. While Ethena Labs has reassured users that customer funds remain secure, the breach highlights the importance of security measures, especially when interacting with decentralized platforms.
Users are advised to remain cautious and disengage from the compromised platform until Ethena Labs has fully addressed the situation. The incident also underscores the ongoing challenges of protecting digital assets in an increasingly risky crypto environment, where bad actors continue to exploit vulnerabilities for financial gain.
