Zunami, a Defi protocol renowned for its stablecoin staking services, has fallen prey to a significant security breach resulting in a substantial loss of nearly $2.1 million. The breach, identified by blockchain security firm PeckShield on August 13, exploited vulnerabilities related to price manipulation.
The attackers utilized a donation mechanism to inaccurately calculate prices, thereby compromising Zunami’s stability.
Within just 20 minutes of the initial detection by PeckShield, Zunami confirmed the attack’s occurrence. The impact of the breach was extensive, affecting not only Zunami’s stablecoins but also USD stablecoins and Zunami Ether. This incident brings to light the ongoing security challenges faced by the burgeoning cryptocurrency and Defi sectors, prompting concerns about the robustness of their security measures.
Zunami, operating as a yield farming aggregator, boasts a high APY return promise through its decentralized autonomous organization (DAO). With a total value locked (TVL) of 5 million, as indicated on its official website, Zunami’s popularity in the market made it a prime target for attackers seeking to exploit vulnerabilities in the system. As the crypto industry witnesses an exponential rise in cyberattacks, with instances surging from nine in 2017 to a staggering 190 in 2022 according to Statista, ensuring the security of Defi protocols remains a paramount concern.
Various cybersecurity companies, including notable players like Blackberry, have identified common malware threats that plague the crypto sector. Malicious software such as SmokeLoader, RaccoonStealer, and Vidar are among the pervasive threats targeting crypto-related entities.
As the industry continues to evolve, bolstering security measures and proactive threat mitigation strategies are essential to safeguarding the integrity of Defi protocols and the broader cryptocurrency landscape.