- Beluga Protocol, a Multichain AMM platform, was targeted in a hacking attack on the Arbitrum network, resulting in the theft of approximately $175K worth of cryptocurrency.
- The attackers exploited multiple vulnerabilities to steal tokens, initially taking around 59 ETH from the protocol and bypassing KYC verification by depositing 0.1 ETH from OKX exchange.
- The stolen funds were transferred to the MEXC crypto exchange network, and the Beluga Protocol team has not provided an official comment on the incident.
Beluga Protocol, a Multichain AMM platform, recently faced a malicious hacking attack that resulted in the theft of approximately $175K worth of cryptocurrency. This incident adds to the increasing trend of cyber attacks and hacks in the crypto space during 2023, with losses surpassing a billion dollars.
Beluga Protocol Targeted on Arbitrum Network
According to reports, Beluga Protocol became the target of a hacking attack on the Arbitrum network. The incident was brought to light when security firm PeckShield reported multiple exploit instances where the attackers managed to steal tokens from the protocol.
Significant Losses and Exploits
PeckShield’s initial findings revealed that the attackers successfully stole around 59 ETH from the Beluga Protocol. Furthermore, the attackers utilized fraudulent identification to deposit 0.1 ETH from the renowned cryptocurrency exchange OKX, bypassing the KYC verification process.
After the initial attack, PeckShield identified additional losses. The attackers escalated their exploit, resulting in a total stolen amount of 108.9 ETH, valued at approximately $168K. In a continued effort, the hackers further increased their haul to about 113.3 ETH or roughly $175K.
Transfer of Stolen Funds and Project Response
Tracing the blockchain data, it was observed that the attackers’ wallet address, 0x4843e, transferred the stolen funds to the MEXC crypto exchange network. As of now, there has been no official comment from the Beluga Protocol team regarding this incident.
Impact and Previous Incidents
The news of the attack had an immediate impact on the token’s price, resulting in a brief decline from $0.002797 to $0.002776, marking a 0.75% decrease within minutes. This attack is not the first time Beluga has faced such exploits, having previously dealt with an Over The Counter (OTC) scam earlier this year. The project team denied allegations of liquidity manipulation, explaining that token dumping was done to mitigate potential harm caused by scammers.
Rising Hack Attacks in the Crypto Space
Hacking incidents within the cryptocurrency realm have surged throughout the year. Between July and September alone, crypto projects suffered losses amounting to $890 million due to scams, cyber attacks, and rug pulls. Notably, in the second quarter, approximately $313 million was stolen, indicating a 100% increase in hack attacks during Q3, as per Certik’s data.