Layerswap Halts Domain Hijack, Pledges Compensation

Layerswap has regained control of its platform after an attack on its Go Daddy account resulted in $100k worth of assets being stolen. 

Following the recent exploitation of Layerswap, an organization that streamlines cross-chain cryptocurrency transfers, the company declared today that it had successfully taken over its platform, which provided customers and victims with a great deal of relief.

As a result of an exploitation attack that occurred yesterday on the Go Daddy account hosted on the Layerswap domain, about $100,000 worth of assets were stolen by a phishing scheme, which affected nearly 50 users on the platform.

Although extensive and effective security procedures are at the forefront of crypto technologies, threats to users like these call into doubt the legitimacy of the cryptocurrency sector and raise concerns about the safety of one’s assets.

Layerswap Contains Hack

Despite this, Layerswap successfully reclaimed its abused platform, offering victims compensation and reimbursement equal to the lost assets. Layerswap posted a message on X revealing that the platform fell victim to a phishing scam on March 20, leading its users to a malicious website.

Considering that over 50 customers lost assets worth $100,000 this phishing site was a factor, and the global cryptocurrency landscape expressed concerns regarding the level of security within the business.

After compromising the platform’s domain, exploiters hurried to the company’s X account, as noted in Layerswap’s post on X. In addition, the organization revealed weaknesses in X’s two-factor authentication (2FA).

Layerswap added, “Surprisingly, resetting the X password does not require two-factor authentication,” tagging Musk in the process. The exploiters’ post on the company’s X account, potentially leading to more phishing schemes and subsequent losses, sparked speculation about the extent of the losses.

On the other hand, the company declared that it would provide a total refund equal to the lost amount, which was $100,000, in addition to a 10% compensation.

By demonstrating its efforts to assist users affected by the exploitation attack, the company fostered market goodwill for the cross-chain cryptocurrency transfer platform.

However, the discovery of this attack has led cryptocurrency enthusiasts to speculate about the increasing number of cyberattacks associated with cryptocurrencies.

Data from the on-chain tracker PeckShieldAlert indicates that this year’s cryptocurrency market bull run has coincided with a rise in cryptocurrency-related hacks.

Meanwhile, a wave of exploiters looks to be on the rise concurrently with the influx of investors who are looking to get returns. Trezor, a company that provides hardware wallets, was also the target of a cyberattack not too long ago.

When exploiters ruled out bogus signals of a TRZR token presale on the Solana Network, they directed Trezor’s user base to phishing sites, which resulted in a loss of around $8,100. This was similar to the situation that occurred with Layerswap.