DeFi protocol Balancer frontend is under attack, $238K crypto stolen

Balancer, a decentralized finance protocol built on the Ethereum blockchain, has issued a warning to its users after an attack on its frontend. The platform announced on September 19th at 11:49 pm UTC that users should avoid interacting with the Balancer user interface until further notice.

The details of the attack are currently being investigated by Balancer, and they have not yet provided an official statement on whether user funds have been affected. However, Cosme Fulanito, a contributor to Balancer, has confirmed that the Balancer vault remains secure.

Blockchain security firms PeckShield and blockchain analyst ZachXBT have estimated that approximately $238,000 worth of cryptocurrency has been stolen in this attack.

Users have reported that when they interact with the Balancer website, they are prompted to approve a malicious contract that drains their wallets. This has led to significant losses for some users.

Balancer Website Warning

Upon attempting to access the Balancer website, users are met with a warning sign indicating the ongoing attack. The website is currently not safe for interaction.

PeckShieldAlert (@PeckShieldAlert) has tweeted: “Risk alert! Balancer’s domain has been hijacked and is prompting users to approve a malicious contract that will drain your wallet. This issue is limited to the hijacked front-end and protocol funds are safe.”

This recent attack marks the second security breach for Balancer in less than a month. The platform previously warned of a critical vulnerability on August 22nd and suffered an estimated $2 million exploit just days later.

While Balancer has taken mitigation measures to minimize risks, affected pools cannot be paused. Users are advised to withdraw funds from affected liquidity pools to prevent further exploits.

Conclusion

DeFi protocols continue to face security challenges, emphasizing the need for enhanced security measures and constant vigilance. Balancer is actively investigating the recent attack on its frontend and is working to ensure the safety of user funds.

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