ENA Price Rises as Ethena Labs Restores Website After Domain Hijacking

• Ethena Labs has temporarily closed its website following a security breach of its domain registration account.
• The company advises users to avoid engaging with any site or application claiming to be Ethena’s frontend.
• The price of ENA token dropped approximately 5% following the announcement but later surged as the website resumed operations.

Ethena Labs closes website due to security breach, warns users to avoid phishing attempts while services are restored.

Ethena Labs Tackles Domain Security Breach

Ethena Labs recently announced the temporary closure of its frontend website due to a compromise of its domain registration account. Users were warned through the X platform on Wednesday to steer clear of any site or application that falsely claimed to represent Ethena. At the time of the announcement, the ENA token’s value fell about 5%, declining from $2.32 to $2.18, highlighting investor anxiety over the incident.

Website Restoration and ENA Token Recovery

Just hours after Ethena Labs made its announcement, the company’s website was back in operation. This swift restoration, combined with a bullish market atmosphere, saw a turnaround in the ENA token’s fortunes. According to CoinGecko, ENA experienced a 10% increase in value within 24 hours, trading at $0.2521 at the time of writing. The Ethereum-based protocol remained unaffected by the breach, and the company assured users that funds were secure, although specific details of the attack have yet to be disclosed.

The Nature of Web-based Attacks

Instead of exploiting vulnerabilities in smart contracts, attackers often aim at a project’s website, replacing it with malicious versions to steal user funds. Recent incidents reflect this trend, such as the July breaches of Compound Finance and Celer Network’s websites via a compromised Squarespace service, which redirected users to phishing sites. Similar attacks have also been reported on protocols like Galxe, Velodrome, and Curve.

Conclusion

The swift recovery of Ethena Labs’ website and the subsequent rebound of the ENA token underscore the resilience of well-prepared teams in the DeFi space. While the breach highlights ongoing risks, Ethena’s rapid response reassures stakeholders of the protocol’s security and stability. As always, users are reminded to exercise caution and ensure they interact only with verified sources.