Serenity Shield, known for its “secure private data storage” solution, witnessed its token, SERSH, crash by 98% within minutes. This sharp decline followed a security breach where about 6.9 million SERSH tokens, worth $5.6 million, were stolen from a team’s MetaMask wallet.
The team announced plans to relaunch the token with a new contract without specifying a timeline.
Aftermath of the Serenity Shield Incident
Responding to the incident on February 27, Serenity Shield halted all trading, deposits, and withdrawals of SERSH on centralized exchanges.
Moreover, the plans for a new token aim to protect the community’s interests and restore faith in the project’s security measures. The Serenity Shield team also assured that holders of SERSH would be compensated with new tokens on a 1:1 basis, with further details pending.
“We are implementing a new SERSH token through a robust smart contract to safeguard our ecosystem. Our team is actively addressing the situation, and further details will be provided as soon as they are available,” the team said.
The exploit, which transpired at around 9:00 am UTC on February 27, led to a dramatic price crash from $0.565 to $0.006 within minutes. Nevertheless, the token has recovered and is currently trading at $0.162. This still represents an over 80% decrease in value over the past 24 hours.
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The project’s inability to protect its tokens has attracted criticism, especially given its focus on secure data storage. The breach contradicts Serenity Shield’s foundational promise of security, leading to public outcry and skepticism among the crypto community.
“If holders’ safety was a priority, you wouldn’t use a Metamask hot wallet for securing vested tokens. Anyway, SERSH is basically dead, the fundamental of the project is based on safety but they can’t ensure their own safety. Irreparable damage to the coin’s reputation and a disaster for the partners who trusted it,” Hamster Altcoins wrote on X.
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This incident highlights the persistent vulnerabilities in the crypto industry, such as code exploits and the risk of private key compromises. Moreover, it occurs amidst growing concerns over BitForex’s activities, which some fear could indicate an exit scam. ZachXBT, an on-chain detective, has pointed out BitForex’s suspicious outflows and withdrawal suspensions, adding to the industry’s unease.
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