Coinfeeds Daily → Socket Recovers $2.3M in Stolen ETH

Socket Recovers $2.3M in Stolen ETH

Published: Jan 24, 2024 | Last Updated: Jan 24, 2024
Howard Kane
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Crypto bridge protocol Socket retrieves two-thirds of hacked funds, showcasing rapid response and industry collaboration.

In a significant development for the cryptocurrency community, Socket, a cross-chain bridge protocol, has successfully retrieved a substantial portion of the Ethereum (ETH) that was stolen in a recent security breach. The hack, which resulted in a loss of approximately $3.3 million, saw the protocol's quick response leading to the recovery of about two-thirds of the stolen funds, equivalent to 1,032 ETH or $2.3 million.

Collaborative Effort in Recovery

The recovery of the stolen ETH is a testament to the collaborative efforts within the blockchain industry. Socket extended its gratitude to the on-chain analytics groups that played a crucial role in tracking down the stolen assets. Their expertise and timely intervention were pivotal in mitigating the impact of the hack.

Addressing the Security Vulnerability

The exploit that led to the theft was identified in the protocol's token approval process. Socket has since taken measures to rectify this vulnerability to prevent similar incidents in the future. Following the fix, the bridge was back in operation within a mere 24 hours of the exploit, showcasing the resilience and rapid response capabilities of the Socket team.

Plans for Affected Users

Socket is currently working on a recovery and distribution plan to compensate the affected users. Details of this plan are expected to be released soon, which will outline how the recovered funds will be distributed among the victims of the hack.

Takeaways

This incident serves as a reminder of the potential security risks associated with cross-chain protocols and the importance of robust security measures. Users of such platforms should stay informed about the security practices and updates provided by the services they use. Moreover, the swift recovery highlights the importance of community and expert collaboration in addressing and resolving crises in the crypto space.

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