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Crypto Exchanges on High Alert as Hackers Exploit GALA Token Upgrade Vulnerability

Jack Evans
Sep 13, 2023 at 07:24 pm

Cryptocurrency exchanges, the lifeblood of the digital economy, are facing an alarming new threat as a consequence of the GALA token's recent contract address upgrade. This upgrade inadvertently created a security loophole that hackers wasted no time in exploiting.

As revealed by a crypto security researcher, X-explore, in a comprehensive thread on X (formerly Twitter), the upgrade resulted in the existence of two types of GALA tokens: the "old Gala" and the "new Gala." The astonishing price ratio between these tokens stands at a staggering 1:12, providing malicious actors with the perfect opportunity for mischief.

The breach was first exploited on September 6th when hackers executed a daring withdrawal of "all GALA" from Coinhub, a Mongolian crypto exchange. Surprisingly, Coinhub remained tight-lipped about the incident, leaving its users in the dark.

X-explore's investigation further revealed that the hackers had been methodically depositing the old GALA tokens on various crypto exchanges since July 27th, conducting a series of audacious fake top-ups. The extent of the vulnerability remains unclear, leaving the broader crypto community on high alert.

Fake deposits have long been a troubling security issue for crypto exchanges. X-explore's findings serve as a stern reminder for platforms to scrutinize the need for token address updates and the accuracy of their deposit assessment protocols. In a world where security is paramount, complacency is simply not an option.

This isn't the first time hackers have shaken the crypto world. Prior to the GALA token incident, SlowMist analysts raised concerns about a "known operational issue" in the LDO Token contract, which had already been exploited on undisclosed trading platforms. X-explore has also linked the hackers responsible for the GALA token exploit to previous misdeeds, including the LDO false top-ups and the Nomad Bridge attack in August 2023.

As the digital realm continues to expand and evolve, the battle between security and exploitation rages on. The GALA token incident serves as a stark reminder that, in the world of cryptocurrencies, vigilance is paramount. For exchanges and investors alike, it's a call to action to ensure that the systems safeguarding our digital fortunes remain one step ahead of those seeking to undermine them. In this ongoing cat-and-mouse game, only the vigilant and prepared will emerge victorious in the end.

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