Renzo, an Ethereum liquid restaking platform, was the latest defi operator to report a compromise as of July 22.
According to a community alert, rogue actors hijacked the Renzo Protocol Discord server on Monday and posted malicious links in an apparent phishing exploit. Renzo warned members to refrain from interacting with posts or messages sent by anyone until further notice. At press time, it was unclear if users suffered any losses or if hackers stole any funds.
Renzo’s native token, REZ, was unaffected by the news. The cryptocurrency showed a slight 0.7% shift to the upside, while several digital assets logged modest slumps.
🚨 Community Alert: Renzo Discord Server Breach
Our Renzo Discord server has been compromised by malicious actors. Please refrain from clicking any links posted in the server.
At this time, treat all messages and links from server admins as potentially dangerous. Consider all…
— Renzo (@RenzoProtocol) July 22, 2024
Liquid restaking (LST) protocols hold over $14 billion in user deposits per DefiLlama. Such platforms gained popularity due to discourse around EigenLayer, a defi tool that allowed users to earn additional yield and secure other networks using staked Ether (stETH).
Despite a 44% decline in the past 30 days, Renzo is still the second-largest liquid restaking provider in the market.
Bad actors target Renzo and defi
The LST platform is one of many defi solutions faced with an onslaught of hacking attempts. Late last year, scammers stole nearly $1 million via a fake Across Protocol Discord server.
Bad actors mimicked CertiK’s Discord link for a phishing campaign, and criminals stole over $6 million in crypto using social media platforms like X last September. More recently, hackers targeted defi domains in a widespread attack on registrar Squarespace. Top protocols Celer Network and Compound Finance were impacted before the issue was resolved.