CoinGecko founder Bobby Ong explained that after Google sold its domain business to Squarespace, two-factor authentication (2FA) was removed due to the forced migration of domains, leading to significant vulnerabilities.
As this security gap on Squarespace domains poses a threat to the decentralized finance (DeFi) space with phishing attacks, Web3 professionals are advising users on how to stay safe.
Security Alert for DeFi Users
On July 11, security investigator ZachXBT issued a warning on Telegram, advising the community to avoid the Compound Finance website, which had been redirected to a phishing site due to the vulnerability. Compound Finance was the first to be compromised because of this issue.
Celer Network and Other Vulnerable Domains
Following the incident, the Celer Network reported an attack but successfully prevented any damage. DefiLlama developer 0xngmi shared a list of over 100 protocols potentially vulnerable to the same attack vector, including major platforms like Polymarket, dYdX, and Pendle Finance.
Advice from Crypto Experts
Bobby Ong emphasized that the vulnerability originated from Squarespace’s domain registrar. He explained that the removal of 2FA after Google’s sale of its domain business to Squarespace created this security gap. Ong advised the crypto community to avoid interacting with any crypto platforms until the issue is resolved.
“The best thing to do is to not interact with crypto and rest for the next couple of days until everything is resolved,” Ong suggested.
Summary Review: Crypto users are urged to exercise caution and avoid engaging with crypto platforms temporarily to mitigate the risk of falling victim to phishing attacks stemming from the current domain vulnerabilities.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
