Key Highlights
- The breach exposed user data like emails, phone numbers (2FA), and identity keys, but no wallets or funds were stolen.
- The incident is linked to four former partners of a third-party service provider, not direct Ice Labs employees.
- Ice Open Network has started legal action and advised users to update their 2FA for safety.
Ice Open Network ($ION), the blockchain project behind the $ION token, earlier today confirmed a breach that exposed its user identity data.
In an official statement shared on X, the team said the incident occurred on April 15. Attackers gained access to a server that reportedly stored users’ identity records. From there, user data was taken and shared outside the system without permission.
The firm said that the breach affected data tied to identity systems, including emails, phone numbers used for two-factor authentication (2FA), public keys, and identity-related identifiers.
According to the team, no private keys, wallet access, or financial assets were compromised during the attack. User funds remain safe.
Attack traced to former third-party partners
The developers stated that people involved in the breach were not workers of Ice Labs. Instead, the issue is linked to four former partners connected to a third-party service provider.
This service provider was handling support work for the project. This includes coordinating design tasks as well as public relations. According to Ice Open Network, the attacker first breached a server that held the identity database. After taking the data, it was shared with other parties outside the system. The firm said no funds were lost, but enough user details were taken that could put them at risk of phishing or impersonation attempts.
Ice Open Network has responded by starting a legal procedure. The team said it has filed a complaint with the United Kingdom’s Information Commissioner’s Office and has launched a criminal case with law enforcement.
The team added that they have identified the people responsible and are taking action against them. Users have been advised to update their 2FA settings on both email and phone to stay safe.
Wave of exploits raises security concerns
This incident comes at a time when security issues in the crypto industry are increasing. In April alone, multiple exploit events have led to losses amounting to millions of dollars.
For instance, Drift Protocol was exploited on April 2, leading to about $270 million being taken from its vault. Rhea Finance also suffered the same fate, with $7.6 million taken after the hacker created fake token contracts and injected liquidity into newly created pools in the protocol.
Hyperbridge, a decentralized protocol, was also breached, resulting in $237 million in losses. The largest incident so far happened on April 18 on KelpDAO, where attackers exploited a contract vulnerability using spoofed cross-chain messages, leading to about $292 million in losses.
Overall, such incidents are occurring with increasing frequency, involving both external attacks and internal vulnerabilities, highlighting the need for stronger security measures across crypto platforms.
Also Read: $21 Million on Lido EarnETH At Risk in Kelp DAO Exploit
