The DNS server of decentralized cryptocurrency exchange EtherDelta was successfully breached by an attacker on Wednesday. Hacker redirected system users to a malicious website. Briefly, EtherDelta servers were hacked, albeit temporarily.
EtherDelta servers were hacked with DNS Server Vulnerabilities
EtherDelta told its users that a hacker temporarily hijacked the DNS server their system was connected to and that the current site was fake. stated that it allowed him to send a user to a malicious site. System officials made the announcement in a series of tweets.
EtherDelta is a decentralized exchange, governed by digital contracts.. That means the exchange has no third party control of user funds. However, the service does allow users to transfer their own keys directly to it.
As a result, the hacker may have been able to steal money from users who could not recognize if the site was a fake site, unconsciously importing their private keys into the fake site.
According to the data obtained from the Ethereum blockchain; The hacker is believed to have stolen about 308 ethers – about $250,000 – at current exchange rates, as well as some ERC20 tokens. and said it is “totally safe” for them. The company added that deposits sent by users whose key was never exported on the fake version of the website are “safe”.. However, system users may want to consider moving their money to a new wallet address as a security measure and may want to reconsider the migration decision.. Uploading private keys directly to a website seems to make the most sense.
The Dangers of Cryptocurrency Transfers
The attack resulted in South Korean digital currency exchange Youbit having 17 percent of its assets stolen – the company It was his second attack this year – and it came just days after he revealed that he lost when he forced its operator Yaepan to declare bankruptcy.
Like Youbit, EtherDelta was a small exchange. CoinMarketCap reported that it has processed roughly $7 million in volume over the past 24 hours, showing a slightly lower-than-average figure due to the breach. However, the exchange was popular with ERC20 token traders as it was one of the first malls to support tokens from lower profile initial coin offerings (ICOs). won’t open. But each attack demonstrates the risks of using cryptocurrency exchanges, either decentralized or decentralized.
CCN