Blockchain Firm SlowMist Releases Latest Web3 Security Report

Over the course of August 28 to September 3, 2023, a total of seven security incidents resulted in an estimated loss of around $830,000, according to SlowMist’s Blockchain Hacking Archive. This weekly update highlights the latest developments in web3 security incidents.

One notable incident occurred on August 29, when Ivan Bianco, a Brazilian YouTube user, accidentally leaked the mnemonic phrase for his cryptocurrency wallet during a live stream on his Fraternidade Crypto channel. This mistake led to the theft of cryptocurrencies and NFTs worth nearly $60,000. Bianco, who has around 34,000 subscribers on YouTube, filed a police report following the incident. Interestingly, he also received a message from an anonymous individual on Discord, who claimed to be the thief and expressed regret before abruptly ending the call. Surprisingly, the wallet used in the theft returned approximately $50,000 worth of cryptocurrencies to Bianco.

Another incident involved Starkware, an Ethereum Layer 2 scaling solution, on August 30. The company had been warning its users for several months that they would lose access to their funds if they did not take action before an upcoming upgrade. Unfortunately, some users failed to see these notices and subsequently found themselves locked out of their Starkware accounts, resulting in an estimated loss of $550,000. However, due to community pressure, Starkware has since re-enabled the wallet upgrade functionality.

While this week’s losses saw a significant reduction compared to previous weeks, there has been an increase in Discord-related security incidents. Attackers have been using phishing websites that closely resemble official platforms to trick project administrators into clicking on virus-infected links or malicious bookmarks. Once they gain administrative rights to the project’s Discord server, the attackers mute all channels and introduce their own Discord Bot. They then distribute phishing links within the channel, luring users with bait words like “claim” or “airdrop.” The attackers may also conduct phishing through private messages while impersonating administrators. To protect themselves, users are advised to enable privacy settings that disable private chats from server members upon joining a Discord server. Additionally, adding notes to Discord bots that have undergone multiple layers of official authentication can help users identify fraudulent bots that publish phishing content. It is crucial for project teams to pay attention to community feedback, remove malicious accounts promptly, and provide anti-phishing safety education to users upon joining a Discord server.

SlowMist, established in January 2018, is a blockchain security firm that aims to make the blockchain ecosystem as secure as possible for everyone. With a team boasting over ten years of network security experience, SlowMist has become a global force in the industry.

For more information on this update, visit SlowMist’s website.

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