July 21, 2024
Crypto Thieves Snatch $880k Via Phony Discord Server in Across Protocol Scam
Latest Cryptocurrency News

Crypto Thieves Snatch $880k Via Phony Discord Server in Across Protocol Scam

The cryptocurrency community is on high alert as concerns surrounding a potential security breach involving Across Protocol’s documentation come to light. Crypto investigator ZachXBT, in a Telegram post on December 26, raised an alarm regarding a link within the protocol’s documentation leading users to a fake Discord server, suggesting a compromise in the protocol’s vanity invite address.

The warning comes in the wake of a reported incident that resulted in a staggering loss of $880,000 worth of cryptocurrency tied to an undisclosed blockchain entity. According to a disclosure from blockchain forensic firm Scam Sniffer, the victim experienced the loss in aEthWBTC after interacting with a malicious ERC-20 permit message. Although not explicitly naming Across Protocol, ZachXBT attributes the incident to a vulnerability in the protocol’s documentation.

In response to the security lapse, the Across Protocol team acknowledged the existence of a fraudulent Discord server masquerading as an official channel. While the developers did not disclose the full extent of the losses incurred due to the incident, they assured the community that immediate steps were being taken to dismantle the unauthorized server.

Across Protocol, functioning as a cross-chain bridge tailored for layer-2 solutions and rollups relies on UMA’s optimistic oracle for added security measures. The platform places a strong emphasis on capital efficiency, achieved through a unified liquidity pool, a network of relayers, and the implementation of a fee model with no slippage.

According to data from Crunchbase, Across Protocol successfully raised a total of $10 million from notable investors, including Blockchain Capital and two others. As the protocol grapples with the aftermath of the security incident, questions surrounding the broader implications of documentation vulnerabilities and the impact on user confidence loom large in the crypto space.

This incident serves as a stark reminder of the ongoing challenges faced by blockchain projects in ensuring the security of their ecosystems and the critical importance of prompt and transparent communication in such situations. As investigations unfold, the cryptocurrency community remains vigilant, awaiting further updates from Across Protocol regarding the resolution of the breach and measures taken to enhance security.

Image: Wallpapers.com

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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