Casper Network announced via Twitter that it has temporarily ceased all operations due to a security breach. The breach was quickly contained by the network’s rapid response team, which worked in collaboration with the Casper Association, Casper Labs, validators, and the broader community.
Immediate response and measures
Upon detecting unauthorized access, Casper Network took decisive action by halting its entire ecosystem to safeguard against further unauthorized activities. The network has assured users that it has pinpointed the root cause of the breach and is actively developing a solution. In the interim, operations remain suspended to ensure the security of all user accounts. Casper Network stated that few significant accounts experienced any impact despite the breach.
Market impact and ongoing monitoring
The security incident has not directly affected the trading value of Casper Network’s native token, CSPR, which currently stands at $0.01892. This represents a 4.82% decline over the past 24 hours, and the trading volume has plummeted by more than 75%.
The network has committed to providing ongoing updates and will release detailed information about the breach once the immediate security concerns are resolved. These updates will include any necessary code changes and will be available on Casper’s public GitHub repository.
Casper Network has been actively engaging with its community through its official Telegram channel, promising to reveal comprehensive details about the breach post-resolution. The network has received commendable support from the community for its swift and transparent handling of the incident. Furthermore, a user on X (formerly Twitter) highlighted the lack of on-chain metrics regarding the breach and urged the network to enable monitoring of individual CSPR transactions for enhanced transparency.
Rising Trend in Crypto Security Incidents
2024 has seen a significant uptick in cybersecurity threats within the cryptocurrency sector. TRM Labs reported over $1.3 billion stolen by June, a substantial increase from $657 million during the same period in 2023. Notable incidents include a significant breach at the Indian cryptocurrency exchange WazirX on July 18, resulting in over $230 million lost due to compromised Safe Multisig wallets on the Ethereum network. In response, WazirX has initiated a recovery plan incorporating a socialized loss strategy to mitigate the impact on its users, indicating that approximately 45% of all user funds were affected.
Focus on decentralized finance
Merkle Science’s HACKHUB 2024 report points to decentralized finance (DeFi) platforms as the primary targets for recent hacks. The report notes a decline in attacks on smart contracts, down by 93.5% this year, suggesting a shift in hacker strategies toward more accessible attack vectors.
Additionally, Wu Blockchain reported increased phishing activities on the TON blockchain, with scammers employing bots, anonymous Telegram numbers, and phishing links to infiltrate TON wallets, often through deceptive airdrop offers. Casper Network’s experience underscores the persistent cybersecurity challenges in the cryptocurrency industry, prompting ongoing vigilance and innovative security measures to protect user assets and maintain trust in digital financial systems.