Sanctum Protocol, a prominent player in the Solana ecosystem, has raised the alarm about a significant breach. The protocol, known for its liquid staking token services, has lost control of its primary domain to an unknown entity, potentially exposing users to scams and phishing attacks.
Sanctum Protocol Security Breach Alert
In a critical announcement today, Sanctum Protocol, a liquid staking token (LST) protocol built on the Solana ecosystem, has alerted users to a serious security breach. The protocol’s official X account disclosed that they have lost control of their domain name, unstake.it, which has been taken over by an unknown entity.
Their officials believe the compromised website is likely being used for scamming or phishing purposes, posing a significant risk to users. The protocol has strongly advised all users to avoid visiting or interacting with the unstake.it website in any capacity.
For those who have previously authorized the website have been urgently recommended to revoke all access rights immediately to protect their assets and personal information. The team stated they are actively working to have the domain blacklisted on various cryptocurrency wallets to prevent further potential harm.
They are also getting the domain revoked and unhosted. This incident serves as a stark reminder of the ongoing security challenges in the cryptocurrency space and the importance of vigilance when interacting with decentralized finance (DeFi) protocols. They have promised to provide updates as the situation develops. In the meantime, users are advised to stay alert and verify all communications through official channels.
Also Read: Mt. Gox Prepares to Move the Rest of 80.5K Bitcoins, BTC Under Pressure
Solana Based Airdrop Controversy
Prior to the security breach, Sanctum faced criticism over its CLOUD token airdrop strategy. The project aimed to reward long-term alignment and “earnestness” rather than short-term airdrop farming. Half of the airdrop was allocated based on points, while the other half was distributed based on users’ social contributions to the project.
Despite intentions to combat crypto-cynicism, the airdrop resulted in significant community disappointment. Many recipients expressed anger and frustration with the allocation, leading to public criticism and even tracking of users who sold their tokens immediately after receiving them.
The co-founder FP Lee acknowledged that while certain aspects of the airdrop execution were successful, such as incentivizing long-term holding through better vesting prices, the attempt to reward earnestness fell short. It created resentment among those who didn’t receive allocations, contrary to the goal of rallying the community around positive behavior.
Also Read: Venezuelan President Accuses Elon Musk in New Conspiracy Claims
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
From: coingape
Crypto News
✓ Share: