In a recent cyber heist, a hacker successfully drained $35 million worth of fwdETH, triggering a significant drop in the token’s value. The breach occurred when the victim unknowingly authorized a malicious “permit” signature, granting the attacker access to drain their wallet.
Following the theft, the hacker quickly sold off the stolen fwdETH, intensifying the decline in the price of dETH. This sudden sell-off caused widespread disruption among various decentralized finance (DeFi) protocols, including PAC Finance and Orbit Finance, which are heavily dependent on dETH.
Investigation into the Breach
Initial investigations have traced the attack back to the hacker’s wallet, identified by the address 0x0605edee6a8b8b553cae09abe83b2ebeb75516ec, which facilitated the rapid disposal of the stolen assets. The compromised wallet belongs to the victim, identified as 0xeab23cfe3776adf45e2e3dc56bcf739f6e0a393, and the exploit stemmed from a “permit” signature vulnerability—an increasingly prevalent tactic in Web3 phishing schemes.
Crypto investigator Roffett.eth highlighted the attack on social media, noting that the unexpected sell-off of fwdETH resulted in a ripple effect, destabilizing liquidity and stability across dETH-pegged platforms. This turmoil has left several protocols grappling with the aftermath of the attack.
Sophisticated Phishing Techniques
In a deeper analysis of the attack, Scam Sniffer revealed that the hacker utilized temporary token spender addresses created through the CREATE2 function, complicating detection efforts. This revelation has raised alarms within the cryptocurrency community, as concerns mount over the increasing sophistication of phishing techniques aimed at DeFi users.
As of now, neither the Ring protocol nor the Orbit protocol has publicly addressed the incident, leaving many in the community anxious about the implications of this high-profile breach. The fallout from this attack serves as a stark reminder of the vulnerabilities within the DeFi space and the need for heightened security measures.
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