In recent events, Ethereum-based asset management protocol Gamma Strategies fell victim to a security incident that resulted in the potential drain of 211.9 Ether (ETH), equivalent to $469,000. This exploit was detected by blockchain researcher PeckShield on January 4. It caused a significant drop in the valuation of the altcoin Gamma. The altcoin fell from $0.28 to $0.14. Here are the details…
Peckshield reveals hacking attack on altcoin project
Blockchain researcher PeckShield unearthed an exploit linked to Gamma Strategies worth approximately $469,000. The protocol later confirmed there was a “possible security incident” but reassured users that they could still withdraw their funds during the ongoing investigation. Despite this admission, Gamma did not provide any comment in response to community questions.
Amidst the chaos, a fake, verified account emerged on X that impersonated Gamma’s social media presence and attempted to redirect investors to a phishing website. This fake account pretending to be Gamma garnered more attention than the original warning tweet about the security incident. Investors are advised to proceed with caution, double-check links and only interact through official channels until investigations are concluded.
Details of the hack
Further investigation revealed that exploiters targeted Gamma through malicious contracts, resulting in a loss of $4 million. Web3 security firm Cyvers reported that attackers created approximately 40 malicious contracts by performing a price manipulation attack. Hackers exploited vulnerabilities to artificially inflate asset prices and move funds quickly to evade typical security measures.
Despite efforts to fix the initial security breach, Gamma faced another attack, resulting in the loss of 10 ETH, or approximately $22,000. The protocol team is actively collaborating with security experts to investigate both incidents. Unfortunately, the beginning of 2024 has seen three major security incidents, including Orbit Chain losing more than $81 million and Radiant Capital losing $4.5 million due to a smart contract breach.
GAMMA price drop
Following these developments, a major decline was observed in the price of the GAMMA altcoin project. The altcoin dropped nearly 50 percent. It decreased from $0.28 to $0.14. However, at the time of writing, it seems to be trying to recover to $0.17. As the cryptocurrency space grapples with increasing security issues, users are urged to remain vigilant and cautious. The Gamma team continues to work towards identifying and mitigating security issues, emphasizing the importance of secure interactions within the crypto community.
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