Ethereum layer-2 scaling solution Starknet issued an urgent warning to its community on July 1 regarding a compromise of its Discord server.
Starknet’s announcement urged users to avoid engaging with the server, clicking on links, or responding to messages until the issue is resolved.
All Interaction Halted: Is the Problem Beyond Discord?
The breach of Starknet’s Discord server has immediate and potentially severe implications. Users who engage with compromised links or messages may fall victim to phishing scams, malware infections, or data theft.
Our Discord is currently compromised.
Please do not interact with the server, click any links, or respond to any messages until further notice.
We are working to resolve the issue and will provide updates through official channels.
Stay vigilant and protect your…
— Starknet (@Starknet) August 1, 2024
This incident is not isolated. The cryptocurrency and blockchain industry has recently seen a surge in cyber threats targeting digital assets and platforms.
A recent Immunefi report showed that the crypto industry has suffered over $1.19 billion in losses due to 149 hacks and scams in 2024, a 16.3% increase from 2023.
Centralized finance (CeFi) was particularly hard hit, accounting for $636 million (53.4%) of the losses from just six incidents, while decentralized finance (DeFi) saw 143 incidents, leading to $554 million (46.6%) in losses.
The second quarter of 2024 saw a massive increase in CeFi losses, with a 984% rise compared to Q2 2023.
July 2024 alone accounted for $269.4 million in losses from 14 incidents, with hacks being the primary cause, representing 98.9% ($266.4 million) of the total losses.
The Starknet Discord compromise is not the only one. In the past few months, major celebrities have also fallen victim to account hacking, which directly caused financial theft as their accounts were used to promote fake meme coins that were pulled.
Security: A Critical Point of Threat to Crypto
The cryptocurrency market’s rapid growth and high value make it an attractive target for cybercriminals.
According to a report by Chainalysis, a blockchain data platform, cryptocurrency-related crimes reached an all-time high in 2021, with over $14 billion worth of digital assets stolen.
In 2022, $3.7 billion was stolen. However, in 2023, stolen funds decreased by 54.3% to $1.7 billion despite an increase in individual hacking incidents from 219 to 231.
In response to these growing threats, the cryptocurrency industry has enhanced security and protected users. Many blockchain projects invest in advanced security technologies, such as multi-signature wallets, hardware security modules, and decentralized identity solutions.
Regulators are also stepping up their efforts to address cryptocurrency-related crimes. The Securities and Exchange Commission (SEC) has increased its scrutiny of digital asset platforms and initial coin offerings (ICOs) in the United States.
The SEC has filed numerous enforcement actions against fraudulent projects and has issued guidance to help companies comply with existing securities laws.
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