Defi protocol Ambient Finance Suffers DNS Attack

Key Takeaways

• Ambient Finance reported it had recovered control of the domain and was working to restore DNS services.
• The platform urged users to refrain from visiting the site or signing transactions until further notice

Leading decentralised finance (DeFi) protocol, Ambient Finance,  alerted its users to a cyberattack that compromised its Domain Name System (DNS).

 The hackers targeted the protocol’s website, embedding malicious links aimed at stealing assets. However, Ambient assured its users that the on-chain infrastructure and smart contracts remained untouched.

The platform urged users to refrain from visiting the site or signing transactions until further notice. “Contracts and funds are safe and unaffected. DNS is updating, but users should wait for the all-clear before interacting with the front-end site,” Ambient Finance announced.

The hackers used the “Inferno Drainer” malware, a notorious suite designed to steal digital assets, according to security firm Blockaid. The attack had been carefully planned, with Blockaid revealing that the server used for the breach was created just 24 hours before the incident. Within two hours of the attack being detected, Ambient Finance reported it had recovered control of the domain and was working to restore DNS services.

Founded in 2021, Ambient Finance raised $6 million in a seed round in 2023, achieving a valuation of $80 million. The funding was led by Blocktower, with participation from Jane Street, Circle Ventures, and several other prominent investors.

Defi hacks have become increasingly common in recent months. Last month, Onyx suffered a major exploit, resulting in a loss of $3.8 million. In September, Ethereum-based Balancer was hit by a front-end attack, while other DeFi platforms also experienced DNS-related issues over the summer.

The latest development comes days after an Immunefi report revealed that in the third quarter of 2024, crypto hacks and scams amounted to $413 million in losses, a significant decrease from Q3 2023, when hackers stole $686 million.