AirDAO Under Attack: Assessing the Consequences of a Devastating Cyber Assault

AirDAO, a decentralized layer one blockchain governed by the community, was hit by a major breach that resulted in the theft of 35.2 million AMB tokens and 125.51 ETH from its AMB/ETH Uniswap liquidity pool.

The breach was carried out through an advanced social engineering attack, where the intruder exploited vulnerabilities to gain unauthorized access to the platform. By using deceptive email tactics that mimicked legitimate partners, the hacker was able to bypass AirDAO’s network security and cause significant financial losses.

Monitoring by PeckShield revealed that the stolen funds have already been moved to various crypto exchanges such as MEXC Global, KuCoin, Binance, and BitMart. Despite the severity of the breach, AirDAO responded swiftly and collaborated with exchanges and relevant authorities to monitor, track, and recover the stolen assets.

AirDAO assured users that the breach only affected the liquidity pool, and that user funds on the AirDAO blockchain and exchanges remained secure. The AirDAO Treasury was also safeguarded in a multi-signature wallet, requiring multiple signatures for any transactions to occur.

In an effort to encourage the return of the stolen funds, AirDAO offered a 10% white hat bounty to the hackers. However, if the attackers refused to comply, legal authorities would continue their investigation.

Interestingly, the breach did not appear to have a negative impact on the value of AMB, the native token for the AiraDAO ecosystem. At the time of writing, AMB was trading at $0.01253, reflecting a 4.14% increase from its usual price.

Looking ahead, AirDAO is committed to reintegrating liquidity into the Uniswap pools and enhancing the platform’s security system to better defend against future threats.