In a recent post to its followers, interoperability protocol Socket Protocol reported a security breach and strongly recommended users promptly take action to prevent any potential loss of funds.
“Socket has experienced a security incident which affected wallets with infinite approvals to Socket contracts,” a post states.
Socket Protocol Advises Users to Take Action Amid Security Breach
In a recent thread of posts on X (formerly Twitter), Socket explains that the exploit specifically targeted crypto users who had infinite approvals to Socket contracts. It urged users who think they may be affected to shut down approval permissions until the issue is officially resolved.
“Due to the recent exploit, Socket urges all users to revoke all approvals to prevent loss of funds.”
Just before this, it clarified that it had paused all affected contracts. Additionally, assuring users that no further action is required on their part.
According to data from Dune, the wallet that saw the highest loss from the attack so far experienced a loss of $656,945.
However, Socket vows to provide regular updates to its crypto users. Furthermore, it cautions them to be vigilant for fraudulent Socket accounts in the replies of the X thread, which are attempting to engage in phishing activities.
Read more: 15 Most Common Crypto Scams To Look Out For
Crypto Hacks Exceeded $1B in Losses Last Year
This comes after it was revealed that 2023 saw a massive amount of money stolen through crypto hacks.
On January 12, BeInCrypto reported that blockchain security firm SlowMist estimated that total losses from the 10 largest crypto hacks in 2023 totaled over $1 billion.
Mixin suffered a cloud breach that cost clients about $200 million. The firm negotiated to compensate for 50% of losses. The second-largest crypto hack stole $197 million from the decentralized finance lending protocol, Euler Finance.
In October 2023, BeInCrypto highlighted that two significant breaches in the third quarter of the year played a pivotal role in accounting for the majority of funds pilfered from crypto hacks during that quarter – one of them being Mixin.
However, the other was cross-chain router protocol Multichain. Multichain fell victim to a hack that saw $126 million worth of assets compromised.
Read more: What Is a Rug Pull? A Guide to the Web3 Scam
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