Weekly Crypto Hack Roundup: Rugs Pulled and Attacks Exposed! (January 14th – 21st, 2024)

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In the past week, the crypto community faced significant turbulence, with two major security breaches causing ripples throughout the digital landscape. Binance Smart Chain (BSC) took the spotlight as a series of rug pulls distressed innocent investors.

This article provides an in-depth exploration of the notable hacking incidents that unfolded during this dynamic week, shedding light on the vulnerabilities within the decentralized realm.

Socket’s Struggle: Vulnerabilities Out in the Open?

On January 13, an interoperability protocol, Socket fell victim to a security breach. An attacker seized an opportunity within a recently integrated module in the Socket Aggregator system, exploiting a flaw in the token swaps module. 

This vulnerability allowed the perpetrator to siphon funds from users who unintentionally granted infinite approvals to the Socket Gateway contract. Executed through two malicious transactions on Ethereum, the attack resulted in an estimated loss of $3.3 million.

Wise Lending’s ‘Unwise’ Encounter

On January 15, Wise Lending, a Web3 lending application and yield aggregator, encountered exploitation. Approximately 177 ETH, equivalent to around $464,000, was lost due to a contract flaw. The exploit, attributed to flawed share accounting logic with a precision issue, enabled the attacker to drain market funds, leaving the platform and its users with the consequences.

BSC Tokens Take a Hit

A variety of tokens on BSC, including BorzoiCoin (BORZOI), FoxFunnies (FXN), PulseXIncentiveToken (INC), MOE (MOE), SolDragon (DRAGON), Speero (SPEERO), Audify (AUDI), StarkPepe (SPEPE), BoxyDude (BOX), and MAR3AI (MAR3), faced suspected rug pulls. The deployers strategically removed liquidity, causing substantial price declines and significant losses on unsuspecting investors, totaling millions.

Harsh lessons Learned

This week’s rug pulls, and hacks incidents showcase the vulnerabilities in the decentralized world. It is high time to emphasize the importance of diligence and heightened security measures for investors navigating the crypto landscape.

With rug pulls becoming a prevalent threat, users are urged to exercise caution and employ strict care before engaging with new projects. Stay informed, stay secure!