Events in the crypto space often take turns no one could have seen coming! Here’s the latest buzz.
The Dolomite crypto exchange has successfully recovered a substantial 90% of the funds lost in a recent hack, thanks to the assistance of a white hat hacker. This unexpected collaboration not only brought relief to the exchange but also highlighted the crucial role of teamwork and vigilance in making things like this happen.
A Week of Turmoil
Just last week, Dolomite faced a significant cyber threat when hackers exploited a contract dating back to 2019, resulting in a hefty loss of $1.8 million, equivalent to 541 ETH. The breach allowed unauthorized access, enabling the perpetrators to siphon off approximately $1.8 million worth of USDC. The stolen funds were quickly laundered through the network, converted into 541.5 ETH and 94,000 DAI.
Vulnerability Exposed!
The breach exposed a critical vulnerability, allowing the attacker to drain funds from any affiliated user linked to the compromised contract. This vulnerability stemmed from a flaw in the approval request system. Dolomite’s developers swiftly advised users to cancel all pending approvals associated with the hacker’s Ethereum address.
Also Read: Crypto Hacks of the Week: Breaches, Scams, and Rug Pulls Rock the Market
From Hack to Recovery
Despite the chaos, Dolomite’s team sprang into action, determined to reclaim the lost assets. Their efforts paid off when they sent an on-chain message to the hacker. Surprisingly, the hacker, identified as a white hat hacker, cooperated in returning a significant portion of the stolen funds. The exchange managed to recover an impressive 90% of the pilfered crypto.
A Win for Dolomite
The complete recovery of 90% of the stolen funds stands as a significant triumph for Dolomite, showcasing the effectiveness of prompt action and collaboration in combating cyber threats. This success serves as a reminder of the importance of robust security measures within the crypto industry, given the ongoing risks of fraud and hacking.
Looking Ahead: Stay Alert and Prepared!
As Dolomite works on formulating a comprehensive reimbursement plan and ensuring fair distribution to every victim, users are reminded to remain vigilant in their crypto activities. Only through concerted efforts can user assets be safeguarded, fostering trust and security within the crypto community.
Another Incident Like This: Super Sushi Samurai (SSS) Hacked for $4.6 Million, Token Crashes
What other measures do you think exchanges can take to protect user funds?
