Ethena Labs halts website after frontend hack

Hackers recently targeted Ethena Labs, a decentralized finance service provider behind the synthetic dollar issuer Ethena, but the protocol reassured users that its core blockchain infrastructure remains secure. On September 18, the team reported a breach affecting the project’s website, confirming that only the frontend user interface was compromised. Fortunately, they clarified that user funds were not at risk or drained during the incident.

As of now, efforts to determine how the hackers gained access to the website management console have not been successful, and Ethena has not provided further details. In light of the breach, users have been urged to avoid any links associated with the project and to disconnect their wallets until further notice.

Ethena, a major player in the decentralized finance (DeFi) space, operates one of the largest synthetic dollar systems, boasting a collateralized, dollar-pegged token with a supply of $2.6 billion primarily issued on Ethereum. However, competition is heating up, as DWF Labs, a crypto market maker, is reportedly advancing its own synthetic dollar offering, which could pose a challenge to Ethena’s market share in the near future.

The recent attack on Ethena highlights a broader trend in DeFi security. While many protocols have faced vulnerabilities at the on-chain level—such as exploits of smart contract bugs—hackers are increasingly targeting the web2 infrastructure that supports web3 projects. In the past, several protocols, including Ethena, Celer Network, and Compound Finance, have experienced compromises through their domain registrars and other web services.

Phishing campaigns have become a common tactic among bad actors, often initiated via hijacked social media accounts. Recently, high-profile breaches included attacks on the social media accounts of layer-1 blockchain Near Protocol and members of the Trump family, emphasizing the ongoing security challenges within the DeFi ecosystem.