Web3 credentials and rewards platform, Galxe, recently made an important announcement. They have stated their intentions to refund over $396,000 to more than 980 users who were impacted by a significant DNS attack that occurred last week. This unfortunate incident resulted in a breach of Galxe’s DNS record, which allowed hackers to redirect visitors from the official website to a malicious phishing site. Understandably, this had a severe impact on users and caused financial losses.
In addition to providing refunds, Galxe has shown a commitment to go beyond restoring the lost funds. They have pledged to add an extra 10% as a goodwill gesture. This gesture demonstrates Galxe’s willingness to take responsibility for the incident and provide their customers with support during this challenging time. The commitment to refund and offer additional compensation can be found in a document shared by the project.
To ensure that affected users receive fair compensation, Galxe will provide refunds in USDT on the Polygon network. The valuation of these refunds will be based on the price of the currency as of October 9th, 3 a.m. PT. Furthermore, Galxe has decided to supplement the initial loss amount by an additional 10% from their project treasury. This generous act aims to alleviate some of the financial burden faced by their affected users.
It is worth highlighting that only users who authenticated transactions on the phishing site were impacted during the attack. Other aspects of the Galxe platform remained uncompromised. This distinction is crucial because it ensures that users can proceed with confidence in other areas of their interaction with the platform. Galxe made it clear that users who believe they were affected but are not listed or notice discrepancies in their loss valuation can reach out to their support team. They should provide relevant evidence to help rectify any issues and find a suitable solution.
Related Post
Unfortunately, Galxe’s experience is not an isolated incident in the crypto world. The industry has seen a significant number of hacks and scams throughout the year, with the third quarter of 2023 being particularly troublesome. According to a report by blockchain security platform Immunefi, there were 76 hacks on crypto and Web3 projects and firms in Q3 2023. This number represents a substantial increase compared to the 30 hacks reported in the same period in 2022.
The consequences of these attacks have been financially devastating. Throughout September, a record-high $332 million was lost to various exploits, hacks, and scams, according to reports. This alarming figure highlights the need for heightened security measures and proactive measures against cyber threats in the crypto industry.
Several notable attacks have occurred in recent months. The Mixin Network, a Hong Kong-based decentralized cross-chain transfer protocol, suffered a breach of its cloud service provider, resulting in a loss of $200 million. Similarly, CoinEx, a cryptocurrency exchange, experienced a suspected attack that led to losses exceeding $53.1 million across its hot wallets. More recently, Stars Arena, a social platform supported by Avalanche’s Contract Chain, fell victim to a significant security breach. These incidents emphasize the urgent need for innovative security solutions to protect users’ funds and personal information.
It is not all doom and gloom, however. There have been instances where organizations successfully recovered stolen funds. For example, crypto exchange HTX managed to recover the $8 million worth of crypto assets that were stolen during a security breach in late September. These positive outcomes demonstrate the resilience and determination of organizations and their commitment to safeguarding their users’ assets.
In conclusion, Galxe’s decision to refund and compensate its affected users is a commendable response to the DNS attack they experienced. By providing refunds and going the extra mile with an additional 10% compensation, Galxe demonstrates its commitment to supporting its users and rectifying any financial losses they may have suffered. Nevertheless, the frequency and severity of recent hacks and scams in the crypto industry highlight the urgent need for enhanced security measures to protect users and their assets. It is crucial for organizations to remain vigilant and proactive in implementing robust security protocols to mitigate the risk of cyber threats.
