Onyx breach was discovered by PeckShield, a blockchain security firm, which noted that the attacker now holds around 521 ETH.
Hackers have stolen $3.2 million from the decentralized protocol Onyx, which has caused users to be concerned about the possibility of a big breach. This adds to the recent instances of hacking activity that have occurred in the cryptocurrency market as global authorities increase their surveillance.
Onyx Hack Losses Hit $3M
According to some observers, the notorious pattern would weaken sentiment in the face of expanding institutional investment. OnyxDAO is allegedly dealing with a security breach that has caused damages totaling $3.2 million.
PeckShield, a company that specializes in blockchain security and data, became aware of the current activity surrounding it. The fraudulent wallet, according to on-chain data, holds a significant amount of VUSD and is transferring funds between several sites.
The attacker currently holds about 521 ETH, which is equivalent to approximately $1.36 million. We have determined that an accuracy issue associated with the CompoundV2 code base caused the Onyx event.
The exploit of the flaw led to the manipulation of exchange rates and the subsequent loss of cash. The depleted assets include VUSD, DAI, XCN, USDT, and WBTC. This incident has sparked discussions about the safety of decentralized protocols and assets within the ecosystem.
Regulators Ramp Up Efforts
Hackers have caused significant losses to cryptocurrency users in the past. Phishing attacks and bridge hacks are two of the most common types of security breaches; however, other platforms are also susceptible to security breaches to differing degrees.
Following a security compromise that occurred on Ethena Labs’ domain registrar, the company has decided to cease all activity related to its website. The company also advised users to refrain from interacting with websites purporting to be Ethena to prevent potential financial losses.
Hacks similar to the Onyx event have drawn regulators’ attention to the cryptocurrency sector. Despite attempts to protect user funds from malicious actors, regulatory measures have the potential to restrict innovation in the sector.
The regulatory environment of the United States, where the Securities and Exchange Commission (SEC) has filed multiple lawsuits against cryptocurrency exchanges and companies, serves as one example of this.
Congressman Ritchie Torres, of the United States of America, has accused the Securities and Exchange Commission of targeting cryptocurrency companies by improperly utilizing its SAB 121 regulation.
However, as the election approaches, the community is praising the recent advancements in the US ecosystem.
