Weekly Crypto Hack Roundup: Rugs Pulled and Attacks Exposed! (January 14th – 21st, 2024)

Last week, the crypto community faced significant turbulence, with two major security breaches causing repercussions across the digital landscape. Binance Smart Chain (BSC) came into the spotlight when a series of rug-pullings distressed innocent investors.

This article provides an in-depth exploration of the notable hacking incidents that unfolded during this dynamic week, shedding light on vulnerabilities within the decentralized realm.

Socket's fight: Vulnerabilities on display?

On January 13, an interoperability protocol, Socket was the victim of a security breach. An attacker exploited an opportunity within a newly integrated module in the Socket Aggregator system, exploiting a flaw in the token exchange module.

This vulnerability allowed the perpetrator to divert funds from users who inadvertently granted infinite approvals to the Socket Gateway contract. Executed through two malicious transactions on Ethereum, the attack resulted in an estimated loss of $3.3 million.

Wise Lending's 'reckless' encounter

On January 15, Wise Lending, a Web3 lending app and yield aggregator, was exploited. Approximately 177 ETH, equivalent to around $464,000, were lost due to a contract failure. The exploit, attributed to faulty stock accounting logic with an accuracy issue, allowed the attacker to drain funds from the market, leaving the platform and its users to deal with the consequences.

BSC tokens take a hit

A variety of tokens on BSC, including BorzoiCoin (BORZOI), FoxFunnies (FXN), PulseXIncentiveToken (INC), MOE (MOE), SolDragon (DRAGON), Speero (SPEERO), Audify (AUDI), StarkPepe (SPEPE), BoxyDude ( BOX), and MAR3AI (MAR3), faced alleged rug pulling. The implementers strategically eliminated liquidity, causing substantial price drops and significant losses for unsuspecting investors, totaling in the millions.

Hard lessons learned

This week's hacking and rug-pulling incidents show the vulnerabilities in the decentralized world. It is high time to emphasize the importance of diligence and increased security measures for investors navigating the crypto landscape.

With carpet pulling becoming a frequent threat, users are urged to exercise caution and take strict care before undertaking new projects. Stay informed, stay safe!