Reports: Over 15 Crypto Projects Avoid Major Vulnerability

Crypto hacks often grab headlines as they result in the loss of billions of dollars from users’ funds. Nonetheless, cybersecurity experts are actively identifying and reporting vulnerabilities in projects, thus contributing to the security of users’ funds.

Funds at Risk of Being Stolen in Seconds

In a blog post, the Fireblocks team revealed their discovery of BitForge, a zero-day vulnerability that impacts more than 15 crypto projects. The team found that these vulnerabilities could be exploited by attackers with privileged access to drain funds from wallets. In certain cases, the attack can be executed within seconds without the knowledge of the user or vendor.

The BitForge vulnerability specifically affects the MPC system, also known as the threshold signature scheme (TSS). Essentially, this system requires a certain number of signatures to complete a transaction. For example, if the fixed threshold is set at three, a transaction would need a minimum of three signatures for authorization.

Unfortunately, the Multichain project recently experienced a $126 million hack due to hackers gaining access to minimum threshold keys as a result of a compromise in the MPC system.

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Safeguarding the Crypto Ecosystem: The Role of White Hat Hackers

Both Binance and Coinbase Wallet as a Service (WaaS) were affected by the BitForge vulnerability. The Coinbase Cloud team expressed gratitude towards the cybersecurity experts and informed users about the updated libraries that enhance error handling.

Changpeng Zhao, the co-founder of Binance, also acknowledged and commended the efforts, sharing his appreciation on Twitter:

Undoubtedly, the crypto ecosystem faces significant challenges, especially with the frequent occurrence of hacks. However, white hat hackers are actively working to mitigate the harm caused by malicious individuals.

In a recent incident, white hat hackers played a crucial role in safeguarding the Tron blockchain by reporting a potential multi-sig vulnerability. This vulnerability had the potential to jeopardize over $500 million worth of users’ funds.

In the previous year, thanks to their proactive reporting of vulnerabilities, white hat hackers successfully saved an impressive sum of over $20 billion in users’ funds.