The company partially blames the hack on GoDaddy’s protocols
Layerswap, which links layer-2 blockchains to centralized crypto exchanges, recovered access to its domain after a brief hijack sapped about $100,000 in user funds.
At about 7:40 PM UTC on March 20, the layerswap.io domain was breached, and users accessing the service were redirected to a phishing site. A short time later, the hacker tried to reset Layerswap’s X account, which completely locked access to the social media account.
Layerswap says that domain registrar GoDaddy’s lethargic intervention enabled the hacker to keep control of the domain for longer. At about 11:07 PM UTC, LayerSwap recovered login access to their GoDaddy account and reset all modifications made by the hacker.
The company later released a statement saying, “In pursuit of understanding how the breach occurred, we engaged with GoDaddy support for explanations but were left without concrete answers. We agreed to receive a detailed report via email, which we plan to share with our community for transparency.”
The intricate Layerswap phishing scam drained approximately $100,000 in crypto assets from the accounts of around 50 customers. The company says it will fully reimburse all affected users and award an additional 10% as compensation for their inconvenience.
Investors are urged to cancel their token approvals to avert further losses and claim all lost assets. Layerswap has already begun refunding affected customers.
At around the same time, decentralized finance (DeFi) aggregator ParaSwap averted a significant loss of funds originating from a vulnerability present in its recently launched Augustus v6 contract.
Despite ParaSwap’s actions to inform users to take preventative steps and rolling back the v6 contract, the hacker cashed out assets worth approximately $24,000 from four separate addresses. The breach affected a total of 386 addresses.
