Curve Finance finds itself in choppy waters once more. The decentralized finance (DeFi) heavyweight issued an urgent alert on May 12, warning its users of a fresh domain name system (DNS) hijack. The cunning intruders rerouted Curve’s web traffic to a malicious site designed to siphon funds. This marks the second security breach targeting Curve in just a week, igniting concerns across the DeFi community.
A Troublesome Recurrence
The unsettling déjà vu hit Curve Finance users hard, echoing a similar attack from August 2022. Back then, attackers managed to clone Curve’s website, rerouting the DNS server to a fraudulent page. The consequences were dire—users’ funds vanished into pools controlled by the attackers. This time around, the Curve team swiftly flagged the issue on X (formerly Twitter), urging users, “Don’t interact!”
What’s the root of the problem? The DNS, serving as the internet’s directory by translating domain names into IP addresses, has been compromised. A user query prompted Curve to clarify the situation: the website was misdirecting to an incorrect IP address. While the team reassures that smart contracts remain untouched, the threat of wallet drains looms large if users engage with the malicious site.
Onchain Security and Industry Reactions
Blockaid, an onchain security firm, jumped into the fray, detecting suspicious activity on Curve’s site. They warned users to steer clear and refrain from signing any transactions until the storm passes. The potential for a “front-end attack”—where hackers target interactive elements of a site to pilfer sensitive data—is a glaring risk. “We’re working closely with affected partners. More updates soon,” Blockaid announced, reflecting the urgency of the situation.
The broader DeFi landscape is no stranger to these threats. April alone saw crypto hackers netting a staggering $92 million, with attacks doubling from the previous month. This alarming trend is further explored in our recent coverage of crypto losses spiking 1,100% in April. The Curve incident only adds to the growing unease within the community. According to a crypto security expert, “Repeated breaches like this not only shake user confidence but underscore the need for robust security protocols.”
Navigating Choppy Waters
Curve’s recent troubles extend beyond the DNS attack. Just days earlier, on May 5, their official X account fell prey to hackers. The incident was contained to the X platform, with no other Curve accounts affected, the team clarified. Yet, it illustrates a worrying trend of high-profile account takeovers this year. The Tron DAO account faced a similar fate on May 2, and even UK Parliament member Lucy Powell’s account was hijacked to promote a scam token.
The quick recovery of Curve’s X account offers a glimmer of hope, yet the underlying causes remain under investigation. The string of security breaches across prominent crypto entities highlights a systemic vulnerability that the industry must address. As discussed in our analysis of restaking making DeFi more secure for institutional traders, innovative security measures are crucial for the future of decentralized finance.
Looking Ahead
As Curve Finance grapples with these challenges, the DeFi community watches closely. The implications extend beyond immediate financial losses, raising fundamental questions about the security architecture underpinning decentralized platforms. Can such protocols withstand increasingly sophisticated cyber threats?
While Curve’s team works diligently to restore trust, the incident serves as a stark reminder of the digital frontier’s inherent risks. The path forward demands vigilance, innovation, and perhaps, an industry-wide reevaluation of security strategies. As May unfolds, the crypto world waits—eager for solutions, cautious of yet another storm on the horizon.
Source
This article is based on: Curve Finance warns its DNS has been hijacked again
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
