Decentralized financial liquidity protocol Balancer announced on Wednesday that it had regained control of its domain after a DNS attack compromised its user interface on Tuesday.
Balancer said in a statement on social media that its “domain is now secure and is back under the control of the Balancer DAO.”
The attack prompted the Balancer team to issue a public notice advising users not to interact with the platform’s interface while they further investigated the incident.
Balancer attributed the attack to social engineering tactics carried out on EuroDNS, a domain registrar for the .fi top-level domain (TLD). Balancer is considering eliminating the .fi TLD in favor of a more secure domain registrar and recommends others follow suit.
The TLD “.fi” is the country code specifically intended for Finland. Like other country-specific TLDs such as “.uk” for the United Kingdom or “.au” for Australia, “.fi” is intended primarily for companies located in or affiliated with the specified country.
Blockworks reached out to us to find out more but has not yet received a response.
Crypto analyst ZachXBT revealed on Tuesday that stolen funds were routed from the platform to a specific Ethereum address. The theft reportedly totaled approximately $238,000.
The attack also triggered fluctuations in the value of the native Balancer token (BAL), causing the token to fall 3.2% to $3.27 on Tuesday from an intraday high of $3.44. Since then, the asset has fallen another 1.2% on the day to $3.23.
The Balancer security incident is the latest in a series of setbacks for the protocol. The platform faced a similar exploit last month that targeted its liquidity pools.
Balancer is built on the Ethereum blockchain network and acts as an automated market maker and liquidity broker. This allows users to conduct token transactions directly through their liquidity pools, eliminating the need for a traditional order book.
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