Today, Liqwid Labs, a decentralized finance (DeFi) protocol built on the Cardano blockchain, reported a hack on their Discord server. The company warned users to be cautious when visiting links or engage with the server until the matter was resolved. This hacking incident was caused by an admin's user token which was compromised via a malicious link, leading to unauthorized access to the account and adding various malicious accounts and spam messages.

Reacting to the breach, Liqwid Labs swiftly secured the server, deleted the compromised admin account, and removed all the spam messages and malicious accounts. Additionally, the protocol has announced plans to reinforce its security measures. It plans to appoint a separate "cold admin" account that shall be solely dedicated to server administration. All of the existing admins' accounts will have their permission denied, in an attempt to prevent similar hacks from occurring in the future.

The incident is a wake up call to the DeFi sector, a rapidly evolving domain, that must be mindful to protect the security of its users. This episode highlights the pressing need for development agencies and protocols to tighten their network security and protect their users from malicious external attacks. Effective security solutions can ensure the transparency and reliability of the system, be it a decentralized or centralized one.



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