3 Major Security Incidents Involving Cryptocurrency This Month

CryptoMode Cryptocurrency Hacking Attack Crypto Networks Scams

The cryptocurrency industry has seen its fair share of security incidents. Even in 2020, things are not improving all that much. The following security incidents – according to Slowmist –  took place this month, making one wonder if things will ever improve.

BASED Thwarts a Hack

Given the current popularity of DeFi platforms, it is not surprising to see hackers target them in quick succession. Especially new platforms will be put through the wringer sooner or later. For BASED, a liquidity farming project ,things certainly got off to the wrong start. Its liquidity pool  – dubbed Pool1 – was the victim to a hacking attempt. 

Rather than trying to steal the cryptocurrency funds, the hacker tried to freeze all funds in the pool by exploiting some undisclosed code. This attempt ultimately failed – thankfully – and the funds are still safe. However, it goes to show that things can go from bad to worse in quick succession if things are left unchecked and unaudited.

Opyn Gets Manipulated

Gaining exposure to the cryptocurrency industry can be done through numerous ways. Exploring an options platform such as Opyn can certainly achieve that goal with relative ease. It appears that the platform’s Ethereum put options were abused by external participants. This only applies to Ethereum put options and nothing else,  which is rather intriguing. 

Because of the attack, a hacker was able to double the use of the native oToken and stole assets of the put option seller. This has affected over 371,000 USDC. The losses have been reduced through a fund recovery over the COnvexity protocol, but it still highlights the need for further investigation. Until the matter is resolved fully, Opyn will keep its liquidity off Uniswap’s Ethereum bearish capital pool. 

Many ETC Double Spend Victims

When a cryptocurrency faces a massive double-spend attack, there will be multiple victims. In the case of Ethereum Classic, there are quite a few problems to be addressed. OKEx has lost nearly $5.6 million, which may result in effectively removing ETC from the platform altogether. Users will be refunded by the company. 

Bitfly is another cryptocurrency platform suffering from this 51% attack against Ethereum Classic. The company has not lost any funds – either internal funds or user money – but ETC pool payments were deemed invalid during the blockchain reorganization. It is unclear what will happen next, as the network is still in a state of disarray at this time. 

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