Layerswap, a platform that facilitates transactions between centralized cryptocurrency exchanges and layer-2 blockchains, has successfully regained control of its domain after a brief hijacking incident that resulted in the loss of approximately $100,000 from users.
The security breach took place on March 20 at 19:40 UTC when the layerswap.io domain was compromised and users were redirected to a phishing site. Shortly after the domain was taken over, the attacker also tried to reset Layerswap’s social media account on platform X, effectively locking the company out.
Layerswap has expressed frustration with GoDaddy’s slow response, which allowed the hacker to maintain control of the domain for an extended period. However, around 23:07 UTC, LayerSwap managed to regain access to their GoDaddy account and reverse the hacker’s changes. The company stated, “In an effort to understand how the breach occurred, we reached out to GoDaddy support for explanations but were left without clear answers. We have requested a detailed report via email, which we intend to share with our community for transparency.”
In a sophisticated phishing scheme, hackers were able to siphon off approximately $100,000 in cryptocurrency from around 50 individuals. Layerswap has committed to fully reimbursing the affected users and offering an additional 10% as compensation for the inconvenience caused.
The company has advised investors to revoke their token authorizations as a precautionary measure to prevent further losses and has already begun the refund process for those impacted.
In a separate incident on March 20, hardware wallet provider Trezor fell victim to a cyberattack resulting in a loss of at least $8,100. Cybercriminals spread false information about a non-existent “$TRZR” token presale on the Solana Network, leading Trezor’s followers to fraudulent websites designed to empty their wallets.
As these security breaches unfold, a report from the United Nations Security Council has highlighted North Korea’s growing involvement in cyberattacks, which have become a significant source of foreign currency earnings for the country. The report estimates that North Korea has generated nearly $3 billion through cyber heists, emphasizing the weaknesses in the security measures of the cryptocurrency sector.
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