Security

UniLend was exploited due to a vulnerability, leading to the theft of approximately $200K (4% of TVL). The attacker used a flash loan to deposit 60 million USDC, manipulated collateral calculations, and exploited a contract bug in the health check process to inflate collateral value, withdrawing 60 stETH. The flaw stemmed from the faulty implementation of the userBalanceOfToken function. UniLend has since fixed the issue, paused V2 deposits, and offered a bounty to recover the funds. This incident underscores the critical importance of security for DeFi platforms and the need for thorough smart contract audits.

Ethereum's privacy issues are increasingly gaining attention, especially as transaction transparency may expose users' financial information and activities. To address this issue, Stealth Addresses have been proposed, aiming to ensure the receiver's identity and transaction details remain private by generating a unique temporary address for each transaction. This method does not rely on third-party privacy protocols but enhances privacy directly at the protocol level. However, the implementation of Stealth Addresses still faces challenges.

This report provides an in-depth analysis of the current state and trends in cryptocurrency security in 2024. We will review major security incidents from this year, analyzing attackers' common methods, targets, and resulting losses. We will also examine historical case studies and draw lessons from them. Furthermore, the article looks ahead to future challenges and opportunities in cryptocurrency security, and explores how regulatory authorities and industry participants can work together to address these challenges and build a more secure and reliable cryptocurrency ecosystem.

Crime-as-a-Service (CaaS) is an emerging cybercrime model in which criminals sell or rent their tools and services to individuals lacking technical expertise, lowering the barriers to committing crimes. In the cryptocurrency space, this model makes it easier for malicious software, phishing tools, and Distributed Denial of Service (DDoS) attacks to be accessed, increasing the risks for users. To protect themselves, users should enhance their security awareness, adopt multi-factor authentication, exercise caution with suspicious links and software, and regularly update their security measures.

Teardrop attacks are a type of Denial-of-Service (DoS) attack that disrupt system operations by sending malformed IP fragment packets. In the crypto space, they can affect nodes, wallets, and exchanges, leading to communication disruptions and transaction delays. To defend against such attacks, systems should be updated promptly to patch security vulnerabilities, firewalls and intrusion detection systems should be configured to filter abnormal traffic, and security at the network layer should be reinforced, thereby effectively ensuring the stability and security of blockchain networks.

Crypto scammers are getting more creative every year, with tactics designed to catch even experienced investors off guard. Today’s guide will walk you through some of the biggest crypto scams of 2024. Along the way, you might recognize some of the tactics and methods aforementioned.

This article, provided by Web3 Lawyer, offers a comprehensive guide on how Chinese companies can compliantly invest in overseas crypto assets to tap into the growth of the Web3 sector. It outlines the benefits of investing in crypto assets, the conditions required for compliant investment, and the ODI (Outward Direct Investment) registration process. This guide aims to help businesses diversify their investments, hedge risks, and boost their international competitiveness in the global market.

This article delves into the essential role of quantum-resistant tokens in protecting digital assets from potential threats posed by quantum computing. By employing advanced anti-quantum encryption technologies, such as lattice-based cryptography and hash-based signatures, the article highlights how these tokens are pivotal in enhancing blockchain security standards and safeguarding cryptographic algorithms against future quantum attacks. It addresses the importance of these technologies in maintaining network integrity and advancing blockchain security measures.

A detailed 2024 Web3 blockchain security analysis, covering major incidents like BitForex’s hack, Rug Pull events, funds laundering trends, and the state of project audits. It examines the growing security challenges, including the impact of cross-chain money laundering, and offers insights on how to protect digital assets in the rapidly evolving ecosystem.

Blockchain is a high-stakes industry. Successful Web3 projects can quickly build billions in value when holding and transacting users’ funds. Security audits are the building blocks of a fortress against malicious attacks and devastating code failures.

Understanding these tactics is your first defense. Whether it’s enabling multi-factor authentication (MFA), verifying URLs or scrutinizing investment opportunities, taking proactive steps can safeguard your assets. This guide explores the strategies scammers use, red flags to watch out for and actionable tips to keep your digital investments safe from fraud.

The CertiK team found that nearly half of the newly issued Ethereum tokens in the Web3 space are linked to Rug Pull scams. These scams are carried out by organized groups who use liquidity holding addresses for money laundering and risk management. The majority of the funds involved come from centralized exchanges. The article concludes with a warning to users to stay alert and avoid being scammed.

Since DeFi's emergence, the quality and security of on-chain data have been paramount concerns for developers, particularly regarding oracles—the critical bridges between on-chain and off-chain data that are often targeted by attackers. This article explores oracle use cases, common attack patterns, and prevention strategies for oracle manipulation. It provides practical guidance for developers on secure oracle integration while explaining their vital role in the blockchain ecosystem. Through analysis of recent incidents like UwU Lend and Banana Gun, we highlight how data reliability fundamentally shapes DeFi ecosystem stability.

This article is a sponsored deep dive into Zircuit, a Layer 2 solution designed to bring proactive security to blockchain infrastructure. Zircuit's AI-driven security measures promise to detect threats before they can cause harm, offering a glimpse into a safer, more sustainable future for blockchain and DeFi.

Gate Research's report states that in December 2024, the Web3 industry experienced 27 security incidents, resulting in a loss of approximately $4.11 million, a decrease from the previous month. However, contract vulnerabilities remain the primary threat, accounting for 72% of the total losses. Major incidents included the FEG cross-chain vulnerability, Clober DEX liquidity vault attack, Vestra DAO staking contract exploit, Clipper DEX single-asset withdrawal vulnerability, and the HarryPotterObamaSonic10Inu flash loan attack. These events exposed key risks in smart contracts and cross-chain protocols, emphasizing the need for enhanced contract audits, the introduction of real-time monitoring, and multi-layered protection mechanisms to improve platform security and increase user trust.