Hack Announcement and Immediate Warning
On July 24, 2024, MonoSwap, a decentralized exchange and staking platform, announced a major hack. The platform warned users not to deposit any new funds or open new positions. This is because the future of MonoSwap is uncertain. They also urged users to withdraw their funds to avoid losses. A malicious link had been identified, and users were told not to interact with it.
What is MonoSwap
Per their platform documentation MonoSwap is a cutting-edge decentralized exchange (DEX) and launchpad, integrated with the robust Blast framework. It offers a highly efficient and customizable protocol that provides deep, sustainable, and adaptable liquidity. Designed to go beyond traditional DEX designs, MonoSwap emphasizes composability, which allows builders and users to leverage its bespoke infrastructure to create unique and sustainable financial solutions. The platform aims to empower the Blast ecosystem with innovative features that offer flexibility and control over liquidity and yield, facilitating the seamless launch of new protocols while ensuring sustained growth and yield.
MonoSwap features an advanced Automated Market Maker (AMM) with both volatile and stable swaps, introducing dynamic directional fees and customized pool configurations. Its V3 AMM integrates innovative spNFT and Maestro technologies for an enhanced trading experience. The platform also introduces a unique liquidity approach with non-fungible staked positions that offer dynamic handling of locks and yield boosts, improved capital efficiency, and versatile re-usability. Committed to permissionless interaction, MonoSwap allows protocols to engage directly without approval, using Maestro Pools for full incentive control. Its dual-token model with MONO and xMONO ensures long-term sustainability through strategic emissions and deflationary mechanisms, redistributing earnings to users and maintaining consistent value appreciation.
How the Hack Happened
According to MonoSwap, the hack occurred on July 23, 2024. One of the developers accidentally installed a phishing application. Scammers pretended to be venture capitalists and lured the developer into a call. During the call, they installed malicious software on the developer’s computer. This computer had access to all of MonoSwap’s wallets and contracts. The hackers were able to withdraw most of the staked liquidity from the platform.
Platform’s Response and Investigation
At the time of writing, MonoSwap is investigating the incident. They are trying to work with venture capitalists to build a better future for the platform. MonoSwap stated, “Unfortunate things happened, and now we are trying our best to solve this issue.” The platform is doing everything it can to recover from the hack and ensure the security of its users’ funds.
Rise in Crypto Hacks
Crypto hacks have been on the rise. On July 11, 2024, CoinGecko co-founder Bobby Ong warned the crypto community about increasing hacks. He cautioned users not to interact with crypto over the next several days. Ong believes the rise in attacks is due to Google’s sale of its domain business to Squarespace. This forced migration removed two-factor security authentication, creating a security vulnerability.
Recent High-Profile Hacks
Since Ong’s warning, several high-profile hacks have occurred. For example, on July 18, 2024, the Indian cryptocurrency exchange WazirX was hacked. Hackers drained $235 million from the exchange. It is believed that the North Korean Lazarus hacking group was responsible.
Security Measures and Precautions
The recent rise in hacks highlights the importance of security measures in the crypto industry. Users should always enable two-factor authentication and be cautious of phishing attempts. It’s crucial to avoid interacting with unknown links and to stay informed about the latest security threats.
Protecting Funds on Staking Platforms
Staking platforms like MonoSwap must ensure the safety of users’ funds. They need to implement strong security measures and regularly update their systems. Users should also be aware of the risks and only stake funds on trusted platforms.
Recovering from a Crypto Hack
Recovering from a crypto hack is challenging. Platforms need to work with security experts to understand how the hack occurred. They must also communicate transparently with their users. Recovery may involve legal actions and cooperation with law enforcement.
The Role of Venture Capitalists
Venture capitalists can play a vital role in helping platforms recover from hacks. They can provide the necessary funds and expertise to rebuild the platform. Their support can be crucial in restoring user confidence and ensuring the platform’s future.
The Importance of Onchain Sleuths
Onchain sleuths like ZackXBT are essential in identifying and alerting the community about security threats. They help uncover vulnerabilities and phishing attempts. Their work is crucial in keeping the crypto community safe.
Conclusion
The hack on MonoSwap is a stark reminder of the security challenges in the crypto industry. Users must be vigilant and platforms must prioritize security. By working together, the community can build a safer environment for everyone involved in cryptocurrency.
