$1.72M loss: Arbitrum liquidity protocol hack details emerged
$1.72M loss: Arbitrum liquidity protocol hack details emerged
The Arbitrum-based liquidity management protocol Concentric.fi experienced serious problems after the hack. Prices collapsed by 51%.
Fraudsters found security holes in the protocol and were able to issue new LP tokens, depleting the platform's assets. Concentric.fi's losses were so tangible that the company announced the launch of an investigation into the incident, according to Coincu.
To that end, Concentric.fi has enlisted the help of companies that research security protocols. The developers' goal is not only to calculate and apprehend the criminals but also to identify weaknesses in the security system in order to prevent potential hacks in the future.
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At the same time, the project team is busy writing explanations of the hacking incident, which will help users understand the reasons for the success of the fraudsters' attack and at the same time evaluate the project's strategy for eliminating possible vulnerabilities. Based on the principles of honesty and openness, Concentric.fi promises to keep the community informed and involved in the recovery process.
Now, the developers are doing their best to protect the interests of users and reduce possible risks. To this end, Concentric.fi is analyzing all available options. The platform team wants to protect clients' funds, so it is trying to implement measures to prevent future vulnerabilities.
It became known that criminals withdrew tokens worth approximately $1.72 million and exchanged them for approximately 716 ETH.
Many decentralized platforms are facing hacks and security breaches. The problem is global, so it is necessary to make continuous efforts and update security measures in the crypto space.
Concentric.fi intends to eliminate the consequences of the hack, draw conclusions from the incident, and strengthen its protocols as soon as possible.
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