Jannat Ara

Layerswap Domain Hijack Resolved, $100K Stolen Funds to be Refunded

Layerswap, a platform facilitating transactions between centralized cryptocurrency exchanges and layer-2 blockchains, has successfully regained control of its domain following a brief hijacking incident that resulted in the loss of approximately $100,000 from users.

The security breach occurred on March 20 at 19:40 UTC, when the layerswap.io domain was compromised, redirecting users to a phishing site. Shortly after the domain was hijacked, the attacker also attempted to reset Layerswap’s social media account on platform X, effectively locking out the company.

Layerswap reported that GoDaddy’s slow response allowed the hacker to maintain control of the domain for an extended period. However, around 23:07 UTC, Layerswap managed to regain access to their GoDaddy account and reverse the hacker’s changes.

In response to the breach, Layerswap stated, “In pursuit of understanding how the breach occurred, we engaged with GoDaddy support for explanations but were left without concrete answers. We agreed to receive a detailed report via email, which we plan to share with our community for transparency.”

The sophisticated phishing scheme orchestrated through Layerswap managed to siphon around $100,000 in cryptocurrency holdings from approximately 50 individuals. As part of its commitment to customer satisfaction, Layerswap has announced plans to fully reimburse the affected users and provide an additional 10% as compensation for the inconvenience caused.

Furthermore, the company has advised investors to revoke their token authorizations as a precautionary measure to prevent further losses and has initiated the refund process for those impacted by the breach.

In a related incident on March 20, hardware wallet provider Trezor fell victim to a sophisticated cyberattack, resulting in losses of at least $8,100. Cybercriminals exploited Trezor’s followers by disseminating deceitful messages about a non-existent “$TRZR” token presale on the Solana Network, leading unsuspecting users to fraudulent websites designed to drain their wallets.

These security breaches underscore the ongoing challenges faced by the cryptocurrency sector in safeguarding against cyber threats. Additionally, a report released by the United Nations Security Council has highlighted North Korea’s increasing involvement in cyberattacks, with estimates suggesting the country has amassed nearly $3 billion through cyber heists. These incidents emphasize the critical need for robust security measures within the cryptocurrency industry to mitigate vulnerabilities and protect user assets.

Powered by Crypto Expert BD

Follow us on Twitter: https://x.com/CryptoExpert_BD

Join our Telegram channel: https://t.me/CryptoExpert_BD

Leave a Comment