Galxe, a web3 credentials and rewards platform, has announced that it will refund over $396,000 to more than 980 users who were impacted by a significant DNS attack last week. The attack resulted in a security breach that redirected visitors to a malicious phishing site instead of the official Galxe website.
In addition to the full refund, Galxe has also committed to adding an extra 10% to the lost funds as a goodwill gesture. This move demonstrates the platform’s dedication to its users and its willingness to take responsibility for the security breach. The refund will be provided in USDT on the Polygon network, based on the valuation as of October 9th.
It is worth noting that only users who authenticated transactions on the phishing site were affected during the attack. Other aspects of the Galxe platform remained uncompromised. However, Galxe is encouraging any users who believe they were impacted but are not listed or notice discrepancies in their loss valuation to reach out to the platform’s support team and provide relevant evidence for rectification.
The incident at Galxe is just one example of the increasing number of hacks and scams plaguing the crypto world. According to a report by blockchain security platform Immunefi, there were 76 hacks on crypto and Web3 projects and firms in the third quarter of 2023, a significant increase compared to the same period in 2022 when there were only 30 hacks reported.
In September alone, approximately $332 million was lost to various exploits, hacks, and scams, marking a record-high month for crypto exploits. The Mixin Network attack on September 23 resulted in a loss of $200 million, while CoinEx, a cryptocurrency exchange, experienced a suspected attack leading to losses exceeding $53.1 million. Stars Arena, a social platform supported by Avalanche’s Contract Chain, also fell victim to a significant security breach.
Despite these concerning incidents, there have been some success stories in recovering stolen funds. Crypto exchange HTX, which experienced a security breach in late September resulting in the loss of $8 million worth of crypto assets, has managed to recover the stolen funds. These recovery efforts highlight the importance of swift action and collaboration within the crypto community to mitigate the impact of security breaches.
As the crypto world continues to evolve and attract more attention from both investors and criminals, it is crucial for platforms and projects to prioritize security measures. Regular security audits, robust encryption protocols, and user education can help prevent and minimize the impact of these attacks. Additionally, the development of decentralized solutions that distribute control and limit single points of failure can enhance overall security in the industry.
In conclusion, Galxe’s commitment to refunding affected users and providing additional compensation demonstrates its dedication to customer satisfaction and security. While hacks and scams continue to pose challenges to the crypto world, incidents like these serve as reminders for the community to remain vigilant and proactive in safeguarding user funds and data.