Monoswapio, a prominent staking platform, recently suffered a significant security breach, prompting immediate warnings to users to refrain from staking or adding additional funds.

The platform has advised users with any staked positions to withdraw their assets immediately to prevent potential losses.

The breach occurred when one of Monoswapio’s developers inadvertently installed a phishing application while joining a call with individuals posing as venture capitalists.

This malicious app enabled the attackers to install a botnet on the developer’s office PC, granting them access to all MonoSwap-related wallets and contracts. Consequently, the hackers withdrew a substantial portion of the staked liquidity positions, causing considerable damage to the protocol.

Monoswapio Team Responds Quickly To Speculations Following The Hack

In response to the attack, the Monoswapio team is actively investigating the incident while collaborating with venture capitalists to fortify the platform’s future security. To prevent further exploits, the team is rapidly deploying new contracts for all platform features.

As a precautionary measure, all deposit methods, including MonoChest, Lottery, Farm, and Dividends, have been temporarily disabled. However, users can still unstake xMONO and MonoPass as usual. Additionally, MONO tokens can be redeemed for xMONO at any time.

To ensure user assets are protected, new contracts for MONO, xMONO, and MonoPass will be established, with a snapshot taken to redistribute the new assets to users once ready.

Despite the breach, the MUSD token remains operational due to its secure mechanism, which only includes mint and redeem functions. The collateral backing MUSD is safe in all scenarios.

The Monoswapio team is committed to addressing the breach and enhancing the platform’s security to prevent future incidents, urging users to remain vigilant and prioritize their asset safety during this period.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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