Celer Network and Compound Finance issued a joint warning to the crypto community about an ongoing attack on their domain addresses, suspecting it to be a potential DNS domain attack affecting multiple projects simultaneously. This type of attack involves stressing the stability of the Domain Name System (DNS) service to gain control over a website and possibly redirect traffic to phishing sites.
Security experts have indicated that several decentralized finance protocols could be facing a threat from malicious actors attempting to steal funds. About 11 platforms, including Pendle Finance, Polymarket, and THORChain, were identified as potential targets.
It was noted that Squarespace, which acquired Google Domains in a $180 million deal last year, currently has all its associated websites under scrutiny. Both Celer Network and Compound Finance have not confirmed the mitigation of the threat at the time of the announcement.
In light of this, users have been advised to refrain from interacting with decentralized finance dapps until further notice. Furthermore, no funds have been reported stolen due to the DNS attack.
This incident emphasizes the need for enhanced security measures as hackers aim to compromise Web3 solutions through their Web2 connections. In response to the ongoing threat in the crypto and Web3 space, white-hat security experts have commenced efforts to mitigate the growing security risk.