ConcentricFi, a prominent financial platform on the Arbitrum network, confirmed a significant security breach. The exploit, discovered recently, resulted in approximately $1.8 million in losses.
ConcentricFi Admits to Security Breach
Investigations revealed a concerning connection. Indeed, the exploiter’s wallet is linked to the notorious OKX Exploiter, suggesting a potentially larger threat to the crypto community.
“The exploiter was able to gain access to Concentric’s private keys via coordinated social engineering,” blockchain security firm CertiK told BeInCrypto
After accessing ConcentricFi’s private keys, the exploiters repeatedly withdrew funds from AlebraPool.
“The exploiter wallet called adminMint on a contract which minted 0.001 CONE-1 tokens. Shortly after they called `burn` which then withdrew funds (but did not entirely drain) from the AlebraPool. This process was repeated several times with the ERC-20 tokens swapped for ETH,” CertiK further explained.
Following the announcement of this news, there was an immediate and significant impact on the market, leading to a 57% crash in Concentric.fi (CONE) prices.
In an immediate response, ConcentricFi issued an urgent warning, advising users to refrain from interacting with the protocol due to the ongoing security incident. This proactive approach reflects their commitment to user safety and the integrity of their system.
“Please do not interact with the protocol we are getting reports of a security incident,” ConcentricFi warned.
ConcentricFi’s security breach highlights the growing challenges in digital asset security. The firm is actively working with cybersecurity experts to address the exploit, reinforcing its dedication to providing a secure financial environment.
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