Hackers exchanged cryptocurrencies worth $100 million for Ether, which is kept on the Harmony layer-1 platform’s blockchain via the Horizon Bridge. The business said in a statement that it had discovered a theft on the Horizon Bridge.
Vulnerabilities Keep Growing
Cryptocurrencies including Bitcoin, Ethereum, and altcoins totaling $100 million were among the affected assets. They have sent nearly 85,867 Ether to the hacker’s address as of the time of writing.
To stop more losses, the bridge has been momentarily closed. However, the project’s developers have also said that the BTC bridge is unaffected by this problem.
The attack is thought to have occurred over 17 hours, starting with a 4,919 ETH transaction and continuing with several smaller transactions between 911 and 0.0003 ETH. This was the last transaction before the bridge was closed.
The crypto space has been subject to several attacks, with this most recent exploit. The Solana Wormhole exploit and the Axie Infinity drain is a couple of these. Additionally, hackers fixed a flaw called the Demonic assault before it could do any harm.
Numerous exchanges have been alerted to the attack’s nature, and forensic experts have been sent to help identify the perpetrator. Nevertheless, identifying him can be quite difficult depending on where the attacker is located.
Ahead of Time Warning
The stability of Horizon’s multisig wallet on Ethereum has been questioned. Only two of the four signatories were necessary to transfer the cash. The founder of Chainstride Capital, a venture capital firm specializing in cryptocurrencies, warned on Twitter that the bridge’s lack of signatories would make it vulnerable to another $9 million theft.
As predicted by developer Ape Dev, the bridge’s assets have decreased by $100 million. His concerns regarding the security of cryptocurrencies are not unique. For example, a well-known developer named Vitalik Buterin addressed the problem of token bridges in a Reddit post in January.
He pointed out that the various chains’ liquidity might be threatened by using bridges. He cautioned that the likelihood of 51 percent attacks on one chain could rise as the number of bridges keeps growing.
The Token Bridge, Axie Inifinity’s Ronin Bridge, and the Wormhole Bridge have been successfully abused for more than $1 billion since he made his prediction.
Multisigs are said to have a security flaw that attackers can take advantage of because of their nature. Only five of the Ronin Bridge’s nine signers were necessary to approve a trade. As a result, the assailant took over $600 million worth of assets.
It is unclear whether the assailant independently came to the same conclusion or whether Dev gave him the notion. The creators of the Harmony platform should have had time to secure their systems, nevertheless, given the warning several months before the attack.
Third-party examination of the security norms of blockchain-based platforms is projected to increase in frequency due to the rise in cryptocurrency hacks.
Price Response from ONE
The attack on the bitcoin market received no response from the market. The market is still awaiting a reaction even though the values of different cryptocurrencies and tokens have not changed considerably.
Over the last 24 hours, ONE has decreased by about 7.4%. The price is present $0.024. Since reaching an all-time high of approximately $0.379 on October 19, it has lost 93.7 percent of its value.