Hackers Target Ethena and DeFi

Hackers attacked synthetic dollar issuer Ethena, but the protocol said its core blockchain infrastructure remained uncompromised.

DeFi synthetic dollar issuer Ethena (ENA) reported that hackers breached its website on Sept. 18. However, the protocol stated that its core blockchain infrastructure remained uncompromised.

The Ethena team alerted users that only the frontend user interface (UI) was impacted by the breach, and their funds were neither at risk nor drained.

At the time of writing, crypto.news had reached out to the Ethena team to ascertain how the hackers managed to gain access to the project’s website management console, but our queries remained unanswered.

Users were advised to avoid clicking on any links tied to the project and disconnect their wallets from the Ethena frontend until further notice.

“The Ethena domain registrar account was recently compromised and we have taken steps to deactivate the site until further notice. The protocol is unaffected and funds are safe. Please do not interact with any site or application purporting to be the Ethena frontend.”

Ethena is one of the largest synthetic dollar operators in decentralized finance (DeFi). Its collateralized, dollar-pegged token has a total supply of around $2.6 billion, the majority of which is issued on the Ethereum (ETH) network, according to data from DefiLlama.

As the protocol ramps up its operations in the coming months, a new player is also set to join the scene. Crypto market maker DWF Labs revealed that work on its synthetic dollar offering had progressed past the design stage.

Hackers target Ethena and DeFi

Ethena and several other DeFi protocols have been subject to compromises across different layers. In some cases, hackers attacked on-chain endpoints and exploited smart contract bugs to steal user funds.

Conversely, bad actors have also increasingly targeted Web2 services employed by Web3 startups. Like Ethena’s domain registrar, criminals also attacked websites owned by Celer Network and Compound Finance in July.

The most common attack often involves launching phishing campaigns through hijacked X pages. Earlier this month, hackers gained access to social media accounts managed by layer-1 blockchain Near Protocol (NEAR) and Trump family members, among others.