DeFi Security Startup Quantstamp Reveals Most Hacked Smart Contract Protocols in January
Summary:
Quantstamp, a DeFi security startup, has listed the top five smart contract protocols that incurred the most significant losses due to hacking and exploits in January. The incidents resulted in a combined loss of $38.9 million. Radiant Capital, Gamma Strategies, Wise Lending, Socket, and Goledo Finance were the affected companies. The firms have taken multiple measures, including suspending operations, reinforcing security, and devising compensation strategies for users affected by the losses.
Quantstamp, a startup focused on decentralized finance (DeFi) security, has spotlighted the five smart contract protocols that incurred the highest losses due to exploits and hacker intrusions in January. In a post seen on a social media platform, Quantstamp pointed out that these incidents, including smart contract breaches, key compromises, and scams, resulted in a total financial blow of $38.9 million.
2024 began on a turbulent note for Radiant Capital as it experienced a $4.5 million loss due to an empty market exploit. Cybersecurity firm Peckshield explained that the problem arose during a short interval when new markets were enabled on lending protocols. To address the situation, Radiant paused its USDC pool on Arbitrum and ensured the safety of user funds. After conducting a thorough investigation, Radiant resumed operations. For asset recovery, the firm asked its customers to fill a Google Form.
Gamma Strategies became a victim of a flash loan attack on January 4, just after the attack on Radiant. The intrusion unveiled a code bug, allowing the culprits to drain $6.1 million from Gamma’s open-to-public vaults. To remedy the incident, Gamma temporarily stopped taking deposits, closing down the security loophole. Wise Lending, on the other hand, incurred a loss of a minimum of $460,000 in another flash loan attack on January 12. The exploit was performed by manipulating the price oracle used by Wise Lending. It was the second incident in half a year, and the DeFi lending application lost 170 Ether (ETH).
Socket, a multichain protocol, faced a security breach on January 16 due to a flaw in user verification input, enabling hackers to abscond with nearly 2,000 ETH, worth upwards of $4 million. Socket unfroze 1,032 ETH (worth $2.3 million approximately) and compensated every user impacted by the attack, as part of its plan to restore users' funds.
Likewise, Goledo Finance fell victim to a breach mirroring Gamma’s episode on January 28. The flash loan attack led to the theft of $1.7 million. Negotiations with the hacker are still under progress, and Goledo has proposed a reward for the money's return. The thief's accounts on centralized exchanges have been frozen, and Goledo is currently evaluating the extent of the loss to devise a recovery strategy, having informed local authorities about the incident. Goledo has outlined a compensation plan for its users and has established a one-week-long Google form submission process for users to file claims.
Published At
1/31/2024 3:13:10 PM
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