Ambient Finance confirms funds are safe, warns users to avoid frontend post-attack

Following a recent cyber attack, Ambient Finance, a Scroll-based decentralized exchange (DEX), has reassured users that their funds and contracts remain secure. However, the platform has issued a strong warning to avoid interacting with its website frontend until further notice.

In a tweet posted on October 19, Ambient Finance confirmed that while their core infrastructure and on-chain contracts were unaffected, a DNS attack compromised the site’s frontend. 

Contracts are fully secure and funds are safe. But do not interact with the Ambient Finance frontend until further notice.

This is the last tweet.

— ambient (@ambient_finance) October 19, 2024

Ambient Finance hack exposes users to malicious links

The hackers took unauthorized control of the Ambient Finance domain, installing malicious links that jeopardized its integrity. The Ambient Finance attack involved redirecting consumers to malicious URLs to steal their digital assets.

Ambient Finance noted that they prioritize user security above all else and suggest that all users temporarily retract their approvals to the firm’s contract while they conduct an investigation into the breach. The company announced on X with a sense of urgency urging users to act promptly and responsibly by providing them with a link to revoke approvals and safeguard their assets. 

Ambient Finance noted that they are actively working with security experts and their domain registrar to achieve normalcy soon. Still, they warned users in a public statement not to interact with the website during this period so they are not exposed to risks.

Security firm Blockaid identified the malware behind the attack as Inferno Drainer. It was specifically designed to steal digital assets. The malicious server responsible for the breach was set up just 24 hours prior to the breach.

A few days ago, Radiant Capital, a LayerZero-based decentralized financial enterprise, suffered losses of more than $50 million due to an attack by unknown individuals. According to web3 security startup Ancilia, the hack was most likely caused by a backdoor contract deployed on the BNB Chain (previously Binance Smart Chain) network.

Regulatory bodies urge lawmakers to strengthen cybersecurity measures

These attack incidents add to the growing list of cyber threats plaguing the decentralized finance (DeFi) sector. The European Securities and Markets Authority (ESMA) recently proposed more robust cybersecurity mandates amid a $1.5 billion crypto theft surge.

The European Securities and Markets Authority has urged EU lawmakers to strengthen crypto regulations by mandating external cybersecurity audits for companies in the sector.

This recommendation comes as the cryptocurrency industry experiences an alarming spike in hacks, putting consumer protections at risk. It is part of the proposed changes to the forthcoming regulatory regime.