MonoSwap, a decentralized crypto exchange (DEX), has recently issued a warning to its users regarding security concerns following a security breach on July 24. The breach compromised wallets and contracts on the platform, prompting immediate action from users to withdraw their funds.

In a statement posted on social media, MonoSwap revealed that one of their developers fell victim to a phishing attack. The attackers posed as venture capital investors and tricked the developer into installing malicious apps through phishing links. This allowed the hackers to gain access to critical systems and manipulate the liquidity at stake.

The attackers took advantage of this access by installing botnets on the office PCs, granting them access to all wallets and contracts associated with MonoSwap. This ultimately led to the withdrawal of a significant portion of the liquidity, resulting in damage to the protocol.

MonoSwap is currently conducting an investigation into the attack and is exploring steps to address the situation. The company is committed to collaborating with venture capital partners to enhance the platform’s security and prevent future breaches. Despite the undesirable circumstances, MonoSwap is dedicated to resolving the issue and ensuring the safety of its users’ funds.

This incident comes amidst a decline in crypto hacks reported by blockchain security firm PeckShield in June. The total loss from hacks in June amounted to $176 million, marking a 54.2% decrease from the previous month’s figure of $385 million. Notable hacks included the BtcTurk exchange losing over $100 million and the UK-based exchange Lykke experiencing a $22 million loss.

Even the DeFi sector was not immune to attacks, with the Uwu lending protocol falling victim to a $19.4 million hack in June. Common attack methods included flash loan exploitation, outfit fraud, and technical vulnerabilities. In April, the crypto industry also saw a decrease in hacking and fraud losses, with total losses amounting to $25.7 million, the lowest recorded since tracking began in 2021.

Furthermore, a report from Chainalysis highlighted a downward trend in attacks on DeFi protocols since the beginning of the year. The first quarter of 2024 witnessed approximately $200 million in losses due to hacking, significantly lower than the same period in the previous year.

Overall, the recent security breach at MonoSwap serves as a reminder of the ongoing risks and challenges faced by the crypto industry. As companies continue to enhance their security measures and collaborate with stakeholders to improve the safety of their platforms, the hope is that such incidents can be minimized, ultimately benefiting all users and investors in the long term.

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