Galxe, a Web3 credentials and rewards platform, has taken action to reassure its community in response to a DNS attack that occurred last week. The platform announced a refund of just over $396,000 to more than 980 affected users, along with an additional 10% compensation on lost funds.
Affected users’ funds will be automatically returned to the wallet addresses from which they were taken unless alternative instructions are provided. Affected users will receive their refunds in Tether (USDT), scheduled to be processed on October 16.
Galxe’s compensation plan is ongoing
The attacker took advantage of DNS hijacking, redirecting visitors from the official Galxe website to a malicious phishing site, leaving many users vulnerable. This incident resulted in user funds being compromised, prompting Galxe to quickly develop a comprehensive recovery plan. The team stated to affected users that they have realized the impact of this security incident and have created a comprehensive recovery plan to fix them.
Users who suffer losses in USDT on the Polygon network are guaranteed to be compensated, which was assessed as of October 9, 3 AM PT. Galxe has also committed to adding an additional 10% to the initial loss amount from the project treasury as a goodwill gesture.
It was explained that only users who documented transactions on the phishing site were affected during the attack, while all other aspects of the site remained intact. Galxe also encouraged users who believe they are affected but are not listed or identify discrepancies in their loss assessment to contact the platform’s support team and provide them with relevant evidence to resolve the issue.
Galxe has implemented enhanced security measures
In an initial estimate as of October 10, losses from the attack on Galxe were reported to have exceeded $396,000, ranging from over $53,000 to just a few cents. Initially, the company estimated that approximately 1,120 users were affected by the hack.
Charles Wayne, co-founder of the platform, said that Galxe is collaborating with two security companies to track the hacked funds. In addition, the platform has optimized its domain name and service security settings, changed its domain provider, and initiated security audits.
Wayne explained that the accident was mainly caused by… [domain registrar] Dynadot resets its account information and gives permission to an impersonator who submitted fake documents claiming to be a certified Galxe member.
The Galxe Protocol is a permissionless, self-sovereign identity infrastructure. The native token GAL saw a drop from $1.20 to $1.15 on Friday, October 6. It then reached $1.21 over the weekend with heavy trading volume. At the time of writing, this has happened settle down At $1.14 per CoinGecko.
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