Dough Finance has become the latest victim in a series of exploits targeting the crypto world. Blockchain analytics platform Certik Alert reported that the DeFi protocol suffered a loss of nearly $1.8 million worth of USDC, with subsequent attacks bringing the total loss to $1.96 million.
The vulnerability came from a lack of validation feature in one of the protocol’s smart contracts, according to Certik Alert. The attacker exploited this weakness and could access and manipulate data within the platform’s contract because the smart contract failed to properly verify the data received during flash loan calls.
The blockchain analytics platform noted that the attacker converted the stolen USDC to ETH via Railgun, thus complicating efforts to identify and recover the assets.
Twenty-four hours ago, Compound Finance’s website was reportedly hijacked in a phishing scam. While the developers claim that user funds and smart contracts remain secure, they have advised users to temporarily avoid accessing the website as it currently redirects to a phishing site. The protocol’s team noted that it is working to resolve the issue and promises to provide updates as they become available.
These incidents are part of a broader trend of security vulnerabilities affecting the crypto market. A notable example is the recent security lapse in Squarespace domains, which has exposed numerous DeFi protocols to phishing attacks. CoinGecko founder Bobby Ong attributed this to Google’s sale of its domain business to Squarespace, which led to the removal of two-factor authentication (2FA) during forced domain migrations. Ong has advised users to abstain from crypto interactions until the vulnerability is addressed.
Despite these challenges, there are signs of improvement in the overall security landscape. A recent report by PeckShield Alert revealed that while the industry lost $176.2 million to exploiters in June 2024, this figure represents a significant decrease from May’s losses of $574.6 million. April has seen the least amount of stolen assets this year, totalling $60.19 million. These figures suggest that while security threats persist, the industry may be making progress in mitigating large-scale losses.
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