Hackers Nab $484,000 in Breach of Ledger's Connect Kit, Raising Concerns for DeFi Platforms

On Thursday, hackers stole $484,000 by injecting malicious code into the Github library of Connect Kit, a widely-used blockchain software maintained by Ledger, a crypto wallet firm. This security breach affects major decentralized finance (DeFi) protocols, prompting warnings for users to avoid decentralized apps (dApps) until the impacted protocols are updated. The Connect Kit, enabling connectivity between DeFi protocols and crypto hardware wallets, is used by various platforms like Sushi, Lido, Metamask, and Coinbase, potentially compromising the front-end of these protocols.

Ledger confirmed the incident in an X post, attributing the exploit to a "phishing attack" targeting an employee, leading to the publication of a malicious Connect Kit version. The company has since identified and removed the malicious code, assuring users that the window for fund drainage was limited to less than two hours.

Bitcoin’s Ordinals caused fees to spike lately

A new spike in miner’s fee for Bitcoin transactions was registered on Dec 17. According to data from Bitinfocharts, transactions were paying as high as $40 in fees to get included.

The surge in Bitcoin on-chain transaction fees is generating mixed reactions, sparking a debate over their sustainability amid the soaring costs of sending BTC. The recent influx of Bitcoin Ordinals inscriptions has led to increased transaction fees for all network users, making on-chain spending less feasible for smaller investors.

Despite frustration over the impact of Ordinals on fees, some influential figures in the Bitcoin community argue that double-digit transaction costs are a precursor to future trends. To mitigate these challenges, proponents suggest adopting layer-2 solutions like the Lightning Network, designed to facilitate mass adoption and address escalating transaction costs.

In other news

• A trader invested in a new Solana-based meme coin, multiplying his $225K initial investment into $1.69M. The “DogWifHat” (WIF) token saw a surge in price recently, netting lucky traders some gains in funny money.

• Bankruptcy fees are eating away FTX’s reserves, with $53K spent every hour. The exchange has reportedly filed a new plan to repay creditors and solve it’s bankruptcy status.

• Another Solana memecoin, BONK, has reignited interest in the blockchain’s “failed” smartphone, Saga. Bids for unboxed phones have been reportedly as high as $5K, according to media.