Danger in DeFi: ConcentricFi Under Attack, and CONE Token Price Plummets Sharply
The Coinmooner team presents you with a fresh overview of events related to the latest hack targeting liquidity tokens (LP). In this news article, we will provide detailed information about the recent incident where attackers successfully drained tokens from the storage.
It's important to note that there are various methods that attackers may use to gain access to others' funds, including phishing, malware, and social engineering. In this case, the latter method was employed, emphasizing the need for careful handling of security in the cryptocurrency space.
The ConcentricFiplatform on the Arbitrum network experienced a significant security breach, during which the attacker compromised the private key and performed several actions, including updating the storage and extracting assets. This led to an approximate loss of $1.8 million. It's worth noting that the attacker is linked to a previous incident on the OKX exchange. ConcentricFi strongly advises users to revoke approvals for storage addresses and is currently conducting an investigation. The team promises to provide a report with a plan to address vulnerabilities.
Following the security breach announcement, the price of the CONE token sharply dropped by 60%, reaching $0.7571. This has negatively impacted token holders, highlighting the vulnerability of cryptocurrency projects and the continuous need to enhance their security measures.
Our Coinmooner team has delved into the details of this incident and is ready to share our findings with readers. During the attack, the malicious actor utilized the adminMint function of the Concentric contract to create CONE-1 tokens. Subsequently, they employed the "burn" function, exchanging these tokens for funds in the AlgebraPool. This process was repeated multiple times, allowing the attacker to acquire various ERC-20 tokens, which were later exchanged for Ether.
ConcentricFi issued a warning, advising users to refrain from interacting with the protocol due to the ongoing security incident. The Concentric team has initiated an investigation and pledges to provide a report post-analysis, including a plan to address the identified vulnerabilities.
We strongly recommend adhering to all guidelines provided by ConcentricFi to ensure the security of your assets. Additionally, we want to remind our readers of the importance of storing personal data in a secure place. Furthermore, observe security practices and always employ advanced methods to protect your finances in the Web3 industry.
