Zunami Protocol Loses $2.1M To Cyber Attack
Zunami Protocol, a prominent player in the decentralized finance (DeFi) space, recently fell victim to a security breach within its zStables pools, resulting in a significant loss amounting to approximately $2.1 million. Despite the financial setback, Zunami is swift to assure its user base that the collateral remains safeguarded.
Please do not buy zETH and UZD at the moment, their emission has been attacked.
— Zunami Protocol (@ZunamiProtocol) August 14, 2023
Zunami Protocol Breach
The attack was initially detected by PeckShield, a well-known blockchain security firm, on August 13. According to their assessment, the breach incurred losses reaching the $2.1 million mark. Zunami Protocol promptly acknowledged the breach just 20 minutes later, acknowledging the security incident that impacted several facets of its ecosystem, including stablecoins and Zunami Ether.
Zunami Protocol, which operates as a DeFi yield farming aggregator specializing in stablecoin staking, boasts a unique DAO structure, promising some of the highest Annual Percentage Yield (APY) returns in the market for staking activities. With a total value locked (TVL) reported at $5 million, as detailed on the company’s official website, Zunami had garnered substantial attention within the DeFi landscape. Data from Statista underscores this concerning trend, revealing a significant surge in the frequency of such attacks over the past six years. Starting from a mere nine instances in 2017, the number has catapulted to a staggering 190 cases in 2022, exposing the urgent need for robust security measures throughout the crypto ecosystem.
Hi @ZunamiProtocol Today's hack leads to >$2.1m loss and there are two hack txs involved:
– tx1: https://t.co/jsOmPT62mk
– tx2: https://t.co/u7YOvoS0R9It is a price manipulation issue, which can be exploited by donation to incorrectly calculate the price as shown in the… https://t.co/yqwMVy0pCA pic.twitter.com/OfrDni7KtE
— PeckShield Inc. (@peckshield) August 14, 2023
Strengthening Cybersecurity Defences
To address these mounting security challenges, cybersecurity firms such as Blackberry have undertaken proactive efforts to counter prevalent malware that poses a substantial threat to the cryptocurrency sector. Among the most pervasive malware strains are SmokeLoader, RaccoonStealer, and Vidar. These malicious software types have displayed their effectiveness in exploiting vulnerabilities within cryptocurrency platforms, potentially leading to breaches and substantial financial losses.
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