Ethena Labs Stops Website Activities After Hacking Domain Accounts

Ethena Labs has stopped website activities after hacking a domain account (Photo; Doc. U.Today)

JAKARTA - Ethena Labs, the organization behind the dollar's synthetic decentralization protocol, was forced to suspend their website activity after hacking into a registrar domain account. This incident sparked fears of frontend attacks, which could cost users their funds when connected to fake sites. Ethena Labs has warned via platform X (previously known as Twitter) to avoid using sites or apps claiming to be part of Ethena.

Ethena Labs menyatakan bahwa pelanggaran terhadap akun domain registrar dapat menyebabkan serangan frontend, di mana situs resmi proyek digantikan oleh situs nyapo. Dalam skenario seperti ini, pengguna yang tidak mengetahui adanya penipuan berisiko kehilangan dana mereka saat terlibat dengan situs tersebut.

Even so, Ethena Labs assured that the Ethereum-based protocol used remained safe, and users' funds were not affected by this incident.

To prevent further losses, Ethena Labs asked all users to immediately withdraw their wallets from related sites and delay all transactions until the investigation is complete. As a precaution, the company also decided to deactivate the site until platform security can be fully guaranteed.

Frontend attacks are now one of the increasingly considered threats in the crypto industry. This attack, similar to conventional code hacking, targets official websites and diverts users to fake sites created to steal funds or other sensitive information.

Ethena Labs isn't the only project to be the victim of this attack. Several other high-profile projects that have been similarly hacked include Compound Finance, Celer Network, and Curve Finance.

The Blockaid security firm also warned the public not to interact with the hacked Ethena site and immediately secure their wallet. In addition, MetaMask, one of the leading wallets in the DeFi world, has also labeled a warning on the Ethena site and advised its users to be careful.

Although this incident occurred in the frontend, Ethena Labs insists that their core protocol remains safe and unaffected. The decentralization platform introducing the USDe synthetic stablecoin still works without a problem. Ethena's USDe uses a preventive hedging model with Ether and Bitcoin to maintain stablecoin value against the US dollar.

Currently, Ethena Labs is still conducting further investigations to determine the type of attack that occurred and seeks to restore access to their website. At the time this news was published, the company had not provided further responses to the incident.