FixedFloat Confirms $26M Exploit in Bitcoin, Ether
Decentralized crypto exchange FixedFloat has been exploited for at least $26 million worth of Bitcoin and Ether, according to on-chain data.
Confirmation of the Attack
The attack on the decentralized crypto exchange FixedFloat, resulting in a loss of $26 million in Bitcoin and Ether, has been confirmed by the exchange team. The confirmation came a few hours after initial reports emerged on X (formerly Twitter). The team initially attributed the outflows to minor technical problems and placed the services in maintenance mode.
Since February 17, several users have reported frozen transactions and missing funds on FixedFloat's X page. On-chain data reveals that approximately 400 Bitcoin, worth around $21 million, and over 1,700 Ether, worth nearly $5 million, were drained on February 18.
The exchange team is currently investigating the security incident and stated that they are not yet ready to make public comments on the matter. They are working towards eliminating all vulnerabilities, improving security, and conducting a thorough investigation. The service is expected to be available again soon, and more details regarding the case will be provided at a later time.
Current State of the Exchange
As a result of the exploit, all pages of the FixedFloat website are displaying an error message. This further indicates the impact of the attack on the exchange's operations and services.
FixedFloat is an automated crypto exchange that does not require user registration or Know Your Customer (KYC) verifications. Approximately 26% of its web traffic comes from users in the United States. The exchange also integrates with the Lightning Network for Bitcoin transactions.
Challenges in On-Chain Cybersecurity
The exploit on FixedFloat highlights the ongoing challenge of on-chain cybersecurity in the crypto industry. Other projects, such as the Solana ecosystem, have also been targeted by cyberattacks.
Scam-as-a-service marketplaces have emerged, offering tools that can perform bit-flip attacks on crypto projects. Additionally, ransomware payments are expected to increase in 2023, with high-profile institutions and infrastructure as primary targets. Criminals managed to make a record $1 billion through supply chain attacks in the previous year.
It is crucial for crypto projects to strengthen their security measures and address vulnerabilities to mitigate the risk of such exploits and attacks.
