Drift Protocol urges users to halt deposits following detection of 'unusual' trading patterns
Following the identification of 'unusual' trading patterns on Wednesday, Drift Protocol has issued a warning advising users against making deposits on the platform.
Following the identification of 'unusual' trading patterns on its platform Wednesday, Drift Protocol, a decentralized cryptocurrency exchange (DEX), has issued a cautionary warning to users, advising them to refrain from depositing any funds until the matter has been fully addressed.
In its preliminary statement, the team behind Drift did not reveal specific details regarding what caused the incident or the extent of damages incurred, and an investigation into the matter is currently underway.
Nevertheless, according to blockchain cybersecurity threat researcher Vladimir S, the exploitation appears to have resulted from a compromised private key, with total losses from the incident potentially reaching as much as $200 million.
"Admin signer was compromised, or whoever controls it intentionally executed these changes," he said.
According to Vladimir S, the assets that were stolen consist of wrapped versions of Bitcoin (BTC), Jito (JTO), the Fartcoin (FRT) memecoin, and various dollar, euro, and Japanese yen stablecoins, all of which have subsequently been moved to multiple different wallets.
Drift Protocol was contacted by Cointelegraph for comment, but no immediate response was received prior to publication.
This is a developing story, and further information will be added as it becomes available.