As a seasoned crypto investor with several years of experience under my belt, I’ve grown accustomed to the rollercoaster ride that comes with investing in digital assets. However, every now and then, an incident like Renzo’s recent Discord server breach serves as a stark reminder of the risks involved.
On July 22, Renzo, a platform for staking Ethereum within decentralized finance (DeFi), announced that it had experienced a security breach.
A community warning was issued on Monday, indicating that unauthorized individuals had taken control of the Renzo Protocol Discord server. These individuals then distributed harmful links in what appeared to be a phishing scam. Renzo advised members to avoid engaging with any content from unknown sources until more information became available. At this point, it remained undetermined if users had experienced any financial losses or if hackers had managed to steal funds.
Despite the negative news, Renzo’s REZ token experienced a small increase of 0.7%. In contrast, other cryptocurrencies reported more significant decreases.
Attention Members: Unauthorized Access Detected in Renzo Discord Group!
We regret to inform you that our Renzo Discord community has been infiltrated by unscrupulous individuals. Kindly avoid engaging with any links shared within the server.
At present, approach all communications from admin personnel with extreme caution. Assume all…
— Renzo (@RenzoProtocol) July 22, 2024
Approximately $14 billion worth of user deposits are managed by liquid restaking (LST) protocols, according to DefiLlama’s latest data. The surge in popularity for these platforms can be attributed, in part, to the buzz surrounding EigenLayer – a DeFi tool that enables users to generate extra income and support other networks through staked Ethereum (stETH).
In the last month, there has been a significant reduction of 44% in Renzo’s market share. Nevertheless, Renzo remains the second-largest liquid resting provider in the current market.
Bad actors target Renzo and defi
The Defi solution provided by the LST platform is just one of several facing a barrage of hacking attempts. Not long ago, cybercriminals managed to swindle close to $1 million through a phony Discord server disguised as Across Protocol.
Criminals impersonated CertiK’s Discord link for a phishing scam last September, resulting in over $6 million being stolen in cryptocurrency through social media platforms such as X. More recently, hackers carried out a widespread attack on registrar Squarespace, targeting defi domains. Notable protocols Celer Network and Compound Finance were among the affected parties before the situation was rectified.
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2024-07-22 19:05