As we step into the new year, the cryptocurrency community is grappling with the aftermath of significant security incidents, totaling a staggering $38.9 million lost in January 2024. Quantstamp, a leading Web 3 security platform, has meticulously documented these events.
Let’s dive deeply and look at the five most substantial smart contract hacks that have shaken the crypto space.
Gamma Strategies: $3.4 Million Exploit
On January 4, Gamma Strategies, a protocol specializing in liquidity management and market-making on Ethereum, fell prey to a $3.4 million exploit. The attacker manipulated transactions, securing 1535 ETH (approximately $3.4 million). The funds were cleverly converted from $USDT to $ETH, sidestepping potential freezes. Tornado cash played a role, with over $1.65 million discreetly deposited into the popular currency mixer.
Radiant Capital: $4.5 Million Flash Loan Incident
Radiant Capital, a cross-chain lending protocol, faced a $4.5 million exploit on Arbitrum. A flash loan attack targeted a new USDC Coin (USDC) market, temporarily halting lending and borrowing markets. The assailant exploited a known rounding issue, manipulating the index parameter.
With precision errors magnified, the attacker executed repeated deposit() and withdraw() operations, impressively sniping the new USDC market deployment within six seconds.
Socket Protocol Drained of $3.3M
Socket, a prominent blockchain interoperability protocol, suffered a security breach resulting in losses exceeding $3.3 million. The breach exploited a vulnerability in user input validation, allowing attackers to exploit wallets that had granted infinite approvals to Socket contracts.
The flaw traced back to a specific route added three days before the attack, affecting over 200 wallets. The team promptly released a recovery plan, assuring affected users of 100% reimbursement for their lost crypto. Funds were swiftly converted into Ether, Polygon’s Matic token, wrapped versions of Bitcoin and Ethereum, and MakerDAO’s Dai stablecoin, showcasing the complexity of the attack.
Wise Lending: DeFi’s First Major 2024 Hack
Wise Lending, a distinguished Web3 lending application and yield aggregator, faced a flash loan attack due to a contract vulnerability, resulting in a loss of approximately $464,000. This incident marks one of the first significant DeFi hacks in 2024. The exploit was attributed to a flaw in Wise Lending’s shared accounting logic, manipulated through a precision issue to drain the platform’s funds.
Goledo Finance: A $1.7 Million Negotiation
Operating on Conflux eSpace, Goledo Finance encountered a significant security breach in its lending and borrowing market on January 28. After identifying irregularities within its lending pool, the company swiftly suspended it to prevent further unauthorized access. The individual behind the $1.7 million hack reportedly contacted Goledo Finance for negotiations, with users anxiously awaiting updates. The team responded proactively, releasing a reimbursement plan post-hack.
Despite the challenges, the crypto community remains optimistic for a smoother year ahead. Efforts are underway for a safer future.