Onyx Faces Security Breach With Hackers Draining $3M, Here’s All

by

As a seasoned analyst with years of experience navigating the volatile and intricate world of cryptocurrencies, I’ve seen more than my fair share of highs and lows, hacks, and heists. The Onyx breach is yet another reminder of the risks inherent in this space.

Through its decentralized system, Onyx is currently experiencing a significant security incident, with malicious actors reportedly stealing $3.2 million. This event has raised concerns among users and adds to the growing list of hacking incidents in the cryptocurrency market. As global regulators intensify their scrutiny, some analysts predict that this trend could negatively impact the overall sentiment within the crypto sector, particularly given the surge in institutional investment.

Onyx Hack Losses Hit $3M 

It appears that OnyxDAO is undergoing a reported security incident, resulting in losses totaling around $3.2 million. Notably, blockchain security and data company PeckShield has flagged suspicious activity surrounding the organization. Analyzing on-chain data reveals that a harmful wallet contains substantial quantities of VUSD, as funds are being transferred across various platforms. Currently, the attacker controls roughly 521 ETH, equivalent to around $1.36 million.

As a researcher delving into today’s incident involving the OnyxDAO, it appears that this unfortunate event is a manifestation of a recognized precision issue in the forked CompoundV2 codebase. The misappropriated funds amount to approximately $4.1 million in VUSD, $7.35 million in XCN, 5000 DAI, 0.23 WBTC, and 50,000 USDT.
The bug is exploited to leverage a nearly empty market to manipulate the exchange…
— PeckShield Inc. (@peckshield) September 26, 2024

In my role as a researcher, I’ve found myself delving into the aftermath of what’s been dubbed the Onyx incident. This event appears to stem from an accuracy problem within the CompoundV2 codebase, which was subsequently exploited to tamper with exchange rates, resulting in significant financial losses. Among the assets affected were VUSD, DAI, XCN, USDT, and WBTC.

Although phishing attacks and bridge hacks often grab headlines, other platforms experience security issues to different extents as well. For instance, Ethena Labs temporarily halted its operations after a security breach on its domain registrar occurred. Moreover, they advised users to steer clear of sites claiming to be Ethena to prevent potential losses.

Regulators Ramp Up Efforts 

Regulatory bodies have been focusing on issues like the Onyx incident in the cryptocurrency market, as these events highlight potential risks. However, while these regulations aim to safeguard user assets from malicious actors, they could potentially hinder innovation within the industry. This is particularly noticeable in the U.S., where the Securities and Exchange Commission (SEC) has taken action against several crypto exchanges and companies by filing lawsuits.

Congressman Ritchie Torres has criticized the Securities and Exchange Commission (SEC) for abusing their SAB 121 rule to single out cryptocurrency companies. Meanwhile, the crypto community is praising recent initiatives within the U.S. financial system as elections draw near.

Read More

2024-09-26 18:03