Unveiled: Layerswap's Recovery Story - How They Rescued Themselves from a $100K Hack

Layerswap successfully regains control over its domain after a hacking incident drained $100,000. The hack, which occurred on March 20 at approximately 19:40 UTC, led users attempting to access Layerswap's service to be redirected to a phishing website. Subsequently, the hacker tried to reset Layerswap's X account, effectively locking users out of their social media access.

Layerswap Recovers Control After Phishing Attack and Promises Compensation

Layerswap attributes the prolonged control by the hacker to the sluggish intervention of domain registrar GoDaddy. Around 23:07 UTC, Layerswap regained access to its GoDaddy account and reversed the changes made by the hacker. However, despite seeking explanations from GoDaddy support, Layerswap received no definitive answers and agreed to await a detailed report via email for transparency.

The elaborate phishing scam orchestrated by Layerswap resulted in the loss of approximately $100,000 in crypto assets from about 50 users. Layerswap plans to refund affected users in full, with an additional 10% compensation for the inconvenience caused.

Investors are advised to revoke their token approvals to prevent further loss of funds and to claim any lost funds and assets. Layerswap has initiated the refund process for affected users.

Layerswap did not respond immediately to Cointelegraph's request for comment.

ParaSwap Successfully Prevents Massive Losses but Some Hackers Manage to Cash Out

In a parallel incident, decentralized finance aggregator ParaSwap thwarted a significant fund loss stemming from a vulnerability in its Augustus v6 contract. Despite efforts to roll back the v6 contract and notify users, the hacker managed to cash out roughly $24,000 from four different addresses.

A total of 386 addresses were affected by the vulnerability, prompting ParaSwap to urge users to report any unidentified fund losses during the initial investigation. ParaSwap recommends that users utilize exploit checker services like Revoke to confirm their safety until approvals are revoked.