On October 6, the Web3 community platform Galxe experienced a website outage that lasted for approximately an hour. Galxe communicated on X about the issue, stating that their website went offline at 14:44 UTC.
They later confirmed, 40 minutes later, that a security breach had occurred, affecting their Domain Name System (DNS) record. They cautioned users against accessing the domain until the security issue was resolved.
Galxe mentioned that the website is now fully recovered and they are actively improving its security measures.
Following the restoration of their website, some X users reported encountering difficulties accessing it due to it being blocked by Google.
Crypto investigator ZachXBT raised concerns about a theft occurring within the Galxe platform. Even after the Galxe website was restored, a wallet linked to the exploit continued to accumulate funds, reaching approximately $160,000 by 17:15 UTC, as reported by DeBank.
ZachXBT hinted at a potential connection between the individual or group responsible for exploiting Galxe and the party behind the attack on the Balancer protocol on September 19th. This incident marked the second assault on Balancer in just one month.
Blockfence cybersecurity service explained, “Their DNS records have been modified to redirect to a phishing web-site that drains users’ wallets.”
The second attack against Balancer resulted in a financial loss of $238,000. Balancer’s team characterized this event as a social engineering attack on their DNS server, which was executed by an individual known as Angel Drainer, who specializes in draining cryptocurrency wallets.
According to the blockchain security company SlowMist, there were indications linking the attacker to Russia.
A recent report from Immunefi, a security platform, revealed a significant surge in losses for Web3 projects during the third quarter of this year compared to the same period in 2022.
The report indicates that cyberattacks increased substantially, rising from 30% to 76% year-on-year. These attacks resulted in losses totaling nearly $686 million in Q3 2023. The most substantial loss during this period occurred due to the Mixin hack on September 25.
Also Read: Friend.tech Users Lose 234 ETH In SIM-Swap Attack
