Cosmos-based cross-chain stablecoin protocol Harbor Protocol has seen the vaults of StOSMO, LUNA, and WMATIC hacked. The project team is currently trying to determine the extent of the damage. The hot development is closely related to the DeFi altcoin market.
Harbor Protocol hacked
According to recent developments, Harbor Protocol, a key component of the Cosmos ecosystem used in cross-chain stablecoin transactions, has been compromised. An unknown amount of StOSMO, LUNA, and WMATIC has been emptied from the vaults of the DeFi altcoin project.
The Harbor team is currently trying to determine the extent of the damage done. Their focus is on identifying the culprits behind the security incident and requesting extradition. However, the team said that once all relevant information has been gathered, they will release a comprehensive report. In the meantime, they shared that they will be conducting a large-scale effort to trace the stolen altcoins or tokens.
DeFi altcoin market is also making an effort
The Harbor team stated that they wanted to get support from the altcoin community in the official statement regarding the hack attack:
A detailed incident report outlining how the abuse took place will be released after all the facts have been gathered. However, we invite the community to offer any support during this time to help us keep track of funds.
1/ Dear Harbor Community,
It has come to our notice that Harbor protocol has been exploited over the past few hours, resulting in a drain on a portion of the funds sitting in the stable-mint and stOSMO, LUNA and WMATIC vaults.
— Harbor Protocol (@Harbor_Protocol) August 19, 2023
The project team summarized the situation in a long statement after the hack attack:
We have noticed that the Harbor protocol has been abused in the last few hours and as a result some of the funds in the stOSMO, LUNA and WMATIC vaults have been wasted. As we write this, the team is working hard to estimate the total losses incurred, investigate the abuser(s), and track down the funds.
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In case the abuser(s) can read this message, we invite you to reach out to us as we are open to conversation to find a solution that is optimal and does not affect users and community members. As a team we have shed blood, sweat and tears to bring Harbor to where it is today and are fully committed to dedicating everything we have to finding abusers to eliminate/minimize the losses incurred.
How has Harbor Protocol (HARBOR) price reacted?
HABOR price dropped 1.5% after the hack news. HABOR, a bearish volume altcoin, is waiting for its team to find a solution before it drops excessively. The Multichain hacking event, which we reported as Kriptokoin.com, was among the latest developments that occupied the DeFi market.
Altcoin market lost $320 in Q1 2023
According to CertiK, in the first quarter of 2023, hackers seized over $320 million in funds from the altcoin market. These losses are significantly lower compared to the first and last quarters of 2022. However, it still represents a significant figure. Looking at the details of the stolen coins, it seems that $31 million was lost in 90 scams, while $222 million was used in 52 flashloan and prediction manipulation exploits. In the first three months of 2023, the most events occurred on BNB Chain. Ethereum suffered the highest loss with a total loss of $221 million.
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