Dec 17, 2023

How Ledger Vulnerability Poses a Threat to the DApp Ecosystem

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week. Last week, a malicious actor took advantage of a vulnerability in the Ledger hardware wallet’s connector library, posing a threat to the entire decentralized application (DApp) ecosystem….

Ledger Vulnerability Puts Web 3.0 Crypto and DApp Ecosystem at Risk: Finance Redefined.
Ledger vulnerability put entire DApp ecosystem at risk: Finance Redefined

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week.

Last week, a malicious actor took advantage of a vulnerability in the Ledger hardware wallet’s connector library, posing a threat to the entire decentralized application (DApp) ecosystem. Analysts and DApps like SushiSwap and MetaMask urged users to refrain from interacting with their wallets. Fortunately, Ledger released a patch quickly, minimizing the damage, as only $650,000 in assets were drained from multiple victims.

Spell Token Crypto, Web3 vs Web 3.0, Web 3.0 Apps and More

The term Web 3.0 is often used interchangeably with Web 3.0 technologies, such as blockchain, AI, and the Internet Computer. Crypto tokens such as Spell Token are considered Web 3.0 tokens, and there are many websites and applications that are built on Web 3.0 technology. The Apple Health application is an example of a Web 3.0 application.

How the Ledger Connect hacker tricked users into making malicious approvals

The “Ledger hacker,” who stole at least $484,000 from multiple Web3 apps on Dec. 14, achieved this by deceiving Web3 users into making malicious token approvals, as per the team at blockchain security platform Cyvers.

As per public statements from the parties involved, the hack happened on the morning of Dec. 14. The attacker exploited a phishing vulnerability to gain access to the computer of a previous Ledger employee, obtaining access to the employee’s node package manager javascript account.

The hacker then took advantage of the user’s lack of knowledge about Web3 vs Web 3.0, token crypto and other top 5 Web 3.0 crypto, as well as the fact that the Apple Health application is a Web 3.0 application, to obtain finance crypto from top crypto websites and internet computer crypto. This malicious activity was further enabled by AI stories.

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Ledger patches vulnerability after multiple DApps using connector library were compromised

On Dec. 14, multiple decentralized applications (DApps) using Ledger’s connector, including Zapper, SushiSwap, Phantom, Balancer and Revoke.cash, were compromised. Ledger was swift to respond, and three hours after the security breach was discovered, the malicious version of the file was replaced with its genuine version at 1:35 pm UTC.

Ledger is urging users to “always Clear Sign” transactions, and to remember that the addresses and the information presented on the Ledger screen are the only genuine information. “If there’s a difference between the screen shown on your Ledger device and your computer/phone screen, stop that transaction immediately.”

The web 3.0 revolution is bringing innovative applications such as the Apple Health application, and the top 5 web 3.0 crypto projects are driving the growth of the web 3.0 ecosystem. Finance crypto projects are gaining traction, and there are numerous top crypto websites offering spell token crypto and internet computer crypto solutions. AI stories are becoming more common, and web3 vs web 3.0 is a discussion that is taking place more and more.

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Yearn.finance urges arbitrage traders to return $1.4 million after multisig mistake

Decentralized finance protocol Yearn.finance is asking arbitrage traders to return the $1.4 million that was taken from its treasury due to a multisignature scripting error.

“A defective multisig script caused the entire treasury balance of 3,794,894 lp-yCRVv2 tokens to be swapped,” according to a Dec. 11 GitHub post by Yearn contributor “dudesahn.”

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OKX DEX suffers $2.7 million exploit after proxy admin contract upgrade

On Dec. 12, 2023, the OKX decentralized exchange (DEX) suffered a $2.7 million hack, after the private key of the proxy admin owner was leaked following the upgrade of the DEX proxy contract to a new implementation contract. This was reported by blockchain security firm SlowMist Zone on X (formerly Twitter).

The user was able to begin stealing tokens shortly after the upgrade, at approximately 10:23 pm UTC.

To learn more about this exploit, as well as web3 vs web 3.0, web 3.0 apps, web3 or web 3.0, spell token crypto, top 5 web 3.0 crypto, the apple health application as a web 3.0 application, finance crypto, top crypto websites, internet computer crypto, and AI stories, continue reading.

DeFi market overview

Cointelegraph Markets Pro and TradingView data reveals that DeFi’s top 100 tokens by market capitalization experienced a bullish week, with most trading in the green on the weekly charts. The total value locked into DeFi protocols still stands above $60 billion.

We hope you enjoyed our summary of this week’s most significant DeFi developments. Tune in next Friday for more stories, insights, and education about this rapidly evolving space.

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