Crypto NewsEthereum (ETH)

Harmony Bridge Hacked, $100M Worth Ethereum Lost

On June 24, the Horizon Bridge will connect Harmony – a Layer 1 PoSBlockchainwhich was built for the native token ONE – with the Ethereum and Binance Chain’s ecosystem was hacked, resulting in a loss of around $100 million in ETH. The exploit was announced on Twitter by the Harmony team, who stated that they are looking for the culprit.

The latest in a series of vulnerabilities

1/ The Harmony team has identified a theft that occurred on the Horizon Bridge this morning and is estimated to be approximately $100 million. We have begun working with national authorities and forensic specialists to identify the culprit and recover the stolen funds.

More 🧵

— Harmony 💙 (@harmonyprotocol) June 23, 2022

The bridge has since been shut down to prevent further casualties. Harmony developers have also clarified that the BTC-Bridge is not affected.

The attack appears to have taken place over a 17-hour period, starting with a transaction worth a whopping 4,919 ETH, followed by several smaller transactions ranging from 911 to 0.0003 ETH. The last took place after the bridge was decommissioned.

The hack is the latest in a series of exploits affecting the crypto space such as: Another recent vulnerability, the Demonic exploit, which affected multiple crypto wallets, was patched before any damage could be done.

Exchanges as well as “national authorities and forensic specialists” were reportedly notified. Unfortunately for Harmony, the former may not be very helpful in the event the hacker’s identity is discovered, depending on the jurisdiction in which the hacker may be located.

“We have also notified exchanges and halted the Horizon Bridge to prevent further transactions. The team is on deck with all hands while the investigation continues. We will keep everyone updated as we continue to investigate and receive more information.”

Advance warning from independent researchers

Curiously, as early as April 2nd, an alert was issued by independent researcher and blockchain developer Ape Dev. In a series of tweets, Ape Dev pointed out that the Harmony Bridge’s security was enhanced by a multi-signatureWallet with only four owners around. He predicted this could be used to carry out a very simple attack by tricking two of the owners into signing transfers worth up to $330 million.

His detective skills have since been recognized by Brave CEO and co-founder Brendan Eich.

👀 https://t.co/MCi4MXJuge

— Ape Dev (@_apedev) June 24, 2022

Whether the Harmony attacker got the idea from Ape Dev’s hint or came to the same conclusion independently is unclear. In both cases, however, the warning came nearly three months before the unfortunate event, which should have given Harmony developers ample time to secure their systems.

As cyberattacks become more common in the crypto space, the security standards of various blockchain-based platforms are likely to come under increasing third-party scrutiny — and rightly so.

Source: Crypto News Deutsch

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