Curve Finance recently made a significant move to a new domain after falling victim to a DNS attack that exposed security vulnerabilities. The DeFi protocol decided to shift to Curve.finance permanently following the attack on its previous domain, Curve.fi, which led to phishing risks for users. The decision was prompted by extended downtime and inadequate support from the .fi domain registrars.
The attack occurred on May 12 when hackers manipulated the DNS records for Curve.fi, redirecting visitors to a fraudulent website mimicking the protocol’s interface. This fake site aimed to deceive users into authorizing transactions that would compromise their wallets. Although the incident was contained at the DNS level, the fake website remained active for hours due to the delayed response from the domain registrar, iwantmyname.
Yu Xian, the founder of blockchain security firm Slowmist, highlighted the severity of the attack, emphasizing the risks posed by phishing scams that target users with fake wallet pop-ups to extract sensitive information. The compromised domain name was promptly frozen following the breach.
Notably, this is not the first time Curve Finance has faced such security challenges. In 2022, the protocol suffered a similar DNS hijack that resulted in losses amounting to around $530,000. The fact that the same registrar, iwantmyname, was in use during both attacks raises concerns about the platform’s vulnerability.
Furthermore, the recent DNS breach occurred shortly after another security incident where a hacker briefly took control of Curve’s social media account to post phishing links. Fortunately, user funds were not affected in that instance, as the team swiftly regained control of the account.
Security experts have noted a concerning trend in the crypto industry, where attackers are increasingly targeting infrastructure-based vulnerabilities rather than exploiting code weaknesses. This shift in focus has led to substantial financial losses, with malicious actors exploiting both centralized exchanges and decentralized finance protocols.
Given the growing sophistication of cyber threats in the crypto space, continuous vigilance and proactive security measures are essential for safeguarding user funds and maintaining trust within the ecosystem. The incidents involving Curve Finance underscore the critical importance of robust security protocols and prompt responses to mitigate potential risks.
As the crypto industry continues to evolve, addressing security challenges and enhancing resilience against cyber threats will be paramount for fostering trust and driving sustainable growth in the decentralized finance sector.