Today, on Arbitrum a liquidity management app Concentric was hit by a social engineering attack and as a result $1.7 million in cryptocurrency has been stolen.
The intruder used an employee’s deployer wallet to gain possession of a crucial private key, allowing him or her control over vaults and the creation of new LP tokens. Three addresses used for the spreading of stolen funds converted to Ethereum.
Cybersecurity firm Cyers also raised an alert about suspicious activity and CertiK linked the attack to a wallet in charge of a previous exploit on the OKX exchange. This points to a possible recidivist.
This event underlines the increasing dependence on liquidity governance protocols in DeFi, particularly following concentrated liquidity characteristics such as that offered by Uniswap. This adds a degree of complexity that makes asset handling more dependent on safe protocols.
Also Read: VeChain’s Swift Security Reinforcement Post Twitter Hack
