DeFi protocol for asset management Gamma lost nearly $500,000 in an ongoing security incident that may have depleted at least 211.9 prompting them to declare an investigation.
Blockchain investigator PeckShield identified an exploit associated with Gamma Strategies on January 4, valued at approximately $469,000.
The decentralized finance (DeFi) protocol subsequently validated a “possible security incident” and reaffirmed that users could still withdraw funds if necessary.
In an X (formerly Twitter) post, the organization stated it would provide additional information regarding the incident following the investigation.
Furthermore, amidst the confusion, Cointelegraph identified a sham verified X account that impersonated Gamma’s social media presence. As the screenshot below shows, the bogus X account attempted to redirect legitimate investors to a phishing website while imploring “all users to revoke all approvals to prevent loss of funds.”
More people liked and viewed the fabricated post than the initial Gamma tweet that cautioned about the security breach. Until the findings of the investigation are finalized, it is recommended that investors verify every link and exclusively engage with Gamma via official channels.
Following a $49 million breach, KyberSwap declared it would reduce its personnel by 50% to maintain business operations.
According to CEO Victor Tran, to further decelerate the rate of capital expenditure, Kyber Network has suspended its liquidity protocol initiatives and KyberAI project. Nevertheless, KyberSwap continues operating its Aggregator and Limit Order functions, constituting its core business.