In a thrilling plot twist witnessed today, following the recent exploitation of Layerswap, an organization streamlining cross-chain crypto transfers, the firm announced a successful takeover of its platform today, granting users and victims immense relief. Following an exploitation attack on the Go Daddy account on the Layerswap domain yesterday, roughly $100K worth of assets were lost to a phishing scheme, affecting nearly 50 users on the platform.

Despite comprehensive and robust security measures being at the forefront of crypto technologies, such threats to users question the crypto realm’s credibility and raise concerns over the security of one’s assets. Nonetheless, Layerswap retrieved its exploited platform back, offering victims compensation and a refund equivalent to lost assets.

A Closer Look Into The Breach

According to a post shared by Layerswap on X, the platform was compromised on March 20, redirecting its users to a phishing site. With nearly 50 users collectively losing $100K worth of assets, this phishing site weighed in, and the global crypto landscape voiced concerns over security within the industry.

Meanwhile, in Layerswap’s X post, the organization also highlighted loopholes in X’s 2FA, as exploiters rushed to the firm’s X account after hacking the platform’s domain. “Surprisingly, resetting X password doesn’t require 2FA,” Layerswap added, tagging Musk. This sparked speculations over incurred losses, as a post by the exploiters on the firm’s X account could have potentially resulted in more phishing schemes and, in turn, more losses.

Whereas, the firm announced that it would offer a total refund equivalent to the lost amount, $100K, along with a 10% compensation. This showcased the firm’s efforts to aid users suffering from the exploitation attack, curating market goodwill for the cross-chain crypto transferring platform. However, with this attack’s surfacing, crypto market enthusiasts speculate over the burgeoning rise in crypto-related cyberattacks.

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Crypto-Related Exploitation Attacks On The Rise

Aligning with the data revealed by the on-chain tracker PeckShieldAlert, crypto-related hacks have been burgeoning amid this year’s crypto market bull run. As investors gush in to gain returns, a wave of exploiters parallelly appears to be on the rise.

Trezor, a hardware wallet provider, also witnessed a cyberattack recently. Resulting in the loss of approximately $8,100, exploiters ruled out false messages of a TRZR token presale on the Solana Network, directing Trezor’s user base to phishing sites, similar to the Layerswap case.

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The post Layerswap Foils Domain Hijack, Vows Compensation & Refund appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am