Squarespace Exploit Exposes Over 100 Crypto Projects

Many crypto projects are currently at risk of exploitation following the hack of IT service management company Squarespace. As a company that offers Software-as-a-Service (SaaS) to crypto projects, the Squarespace hack has exposed more than 105 Web3 platforms.

Squarespace Hack: the Fallout

The crypto industry woke up to the news of the Compound Finance website hack. While not much of a hassle except for the initial inconvenience of accessing the site, users’ funds were deemed safe. The same fate that befell Compound Finance is also posing a threat to inter-layer communication protocol Celer Network.

Besides these two protocol, crypto users are advised to steer clear of Pendle Finance, DYDX Exchange, and Mendi Finance. After sustained growth trends seen over the past few weeks, the Squarespace Hack is also a threat to Polymarket. The prediction marketplace is also at risk as Squarespace powers the platform.

Hacks and exploits are not uncommon in the digital currency ecosystem. As previously reported by Coingape, a number of related exploits have made headlines over the past quarter. From the hack of Japanese firm DMM Bitcoin to the hijack of the X account of 50 Cents, the threat has grown over time.

While the extent of the Squarespace hack remain unknown, users are advised to maintain caution when accessing the exposed platforms. At the moment, many security outlets including Ironblocks have confirmed ongoing investigation into incident.

🚨 SECURITY ALERT 🚨

The websites of both @compoundfinance and @CelerNetwork appear to have been compromised in a DNS attack stemming from an issue with SquareSpace.

Celer has assured that funds are safe, and we are still awaiting further updates from Compound. Ironblocks is…

— Ironblocks (@Ironblocks_) July 11, 2024

What to expect next

Many of the protocols with exposure to the Squarespace hack are providing support to their users. In the case of Compound Finance, Michael Lewellen provided users with an IPF link to access the application. This was not compromised in the hack, however, users are still advised to take caution.

The prevalence of hacks in the crypto world accounts for why proponents are advocating for self-custody of user’s funds. For platforms with bridges and liquidity pools, this exploit might impact users’ funds remarkably.

As a major succor for now, the duo of Compound Finance and Celer Network has confirmed no user fund is impacted. This hack might drive panic into the market, especially if the Squarespace exploit is not resolved swiftly.

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