Layerswap Recovers from Domain Hijack, To Refund $100k Stolen

On March 20, a significant cyber attack targeted Layerswap, a key player in bridging centralized crypto exchanges with layer-2 blockchain networks. The platform’s domain, layerswap.io, experienced unauthorized control, diverting its users to a malicious site. This breach led to an estimated loss of $100,000 for about 50 users. Layerswap has announced plans to not only reimburse these affected individuals but also to provide an additional 10% compensation for the trouble caused.

The incident unfolded at 19:40 UTC when attackers managed to hijack the domain. They didn’t stop there; attempts were also made to reset Layerswap’s presence on a social media platform, effectively removing the company’s access. The issue persisted until 23:07 UTC, when Layerswap regained control over their GoDaddy account and reversed the unauthorized changes.

The delay in GoDaddy’s response played a significant role in prolonging the attacker’s control. Layerswap is actively working with GoDaddy to uncover the breach’s specifics. The company has committed to sharing a detailed report with its community, emphasizing transparency and understanding of the attack’s nature.

Addressing Security Concerns in the Crypto Sector

This event underscores the ongoing security challenges within the cryptocurrency industry. In response, Layerswap has urged its investors to revoke token authorizations to mitigate further risks. The refund process for affected users is currently underway, showcasing Layerswap’s commitment to user security and trust.

The broader crypto community also witnessed a targeted attack on Trezor, a hardware wallet provider, on the same day. Fraudsters aimed to deceive users with a fake “Trezor Token” presale, causing a reported loss of at least $8,100. These incidents highlight the sophisticated tactics employed by cybercriminals to exploit the digital currency landscape.

The United Nations Security Council shed light on North Korea’s increasing cyberattack activities. These operations serve as a significant income source, with nearly $3 billion amassed through such endeavors. This revelation draws attention to the pressing need for enhanced security measures across the cryptocurrency industry to protect against evolving cyber threats.