Galxe’s website went offline for almost an hour just 40 minutes after suffering a security breach that affected its DNS record. According to the announcement, Galxe warned users from visiting the website until the situation was thoroughly resolved. Later on, many users wondered if the website was safe to use again, and Galxe clarified that it had resolved the issue. The platform emphasized that it would continue to enhance existing security systems so incidents like these could be avoided.
Dear Galxe Community,
We recognize the impact that recent events have had upon our users and are quickly working to take remedial action. The Galxe security team continues to take an aggressive approach to protect your data, funds and digital assets.
Steps You Should Take:
— Galxe (@Galxe) October 6, 2023
Galxe Suffers Notable Losses
Amid the situation, several Web3 cybersecurity firms jumped in the situation and claimed that Galxe’s DNS records were tampered with to redirect users to a phishing website that eventually drains their cryptocurrency wallets.
At the same time, the crypto detective, ZachXBT, reported that funds were being stolen from the platform. The wallet that was reportedly linked to the exploit continued to gather funds following the restoration of the Galxe website. At that time, total losses hovered around the $160,000 mark. Many in the crypto space believe that the losses might have increased since then, but the matter currently remains a mystery.
The crypto detective also suggested a link between the exploiter and the party that hacked the Balancer Protocol in September. The Balancer team described the incident as a social engineering attack on its DNS server carried out by an Angel Drainer crypto wallet drainer. SlowMist initially suggested that the attacker was associated with Russia. However, there is no confirmation of this claim so far. The smart contract being used by the hacker on different networks has already been highlighted. Users have been urged to revoke this contract on an urgent basis.
Galxe Resolves the Aftereffects of the Hack
Soon after the exploit, Galxe let its users know that the website would be fully restored once the correct DNS records were implemented globally. The platform also reassured its users that the funds of the customers continue to remain safe as no transactions were made over the course of the previous few hours. Galxe announced that it has engaged with the appropriate law enforcement authorities in hopes of addressing this issue.
It is a fact that losses to Web3 projects were subject to a considerable increase in the third quarter of this year. As per the shared reports, the frequency of these attacks rose from 30% to 76% year-on-year, with losses reaching the $686 million mark. This has been a major point of concern for the crypto world, as consumers continue to fear for the safety of their funds.