In a recent announcement, Equalizer, a decentralized trading protocol, has advised its users to cease using its services temporarily.
Notably, this suspension affects Equalizer.Exchange as well as associated platforms, including cross-chain services, equity analysis tools, test websites, and version 4 of their websites. The Equalizer team has offered several alternative websites and is actively working to restore the main website to full functionality. The reasons behind the temporary closure remain undisclosed, urging users to stay alert for any updates on the situation.
Security Breach Leads to Unauthorized Token Drainage
On the morning of May 14, a security breach was detected when unauthorized transactions began draining tokens from user accounts on Equalizer’s decentralized exchange. The hacker managed to extract various tokens in small amounts, which helped evade immediate detection.
Moreover, the compromised tokens include 2,353 Equalizer (EQUAL) tokens, 510,579 FantomStarter (FS), 2,500 SpookySwap liquidity tokens (spLP), 6 million AnyInu (AI), 985,565 ChillPill (CHILL), 50,000 WigoSwap (WIGO), and 25 multiDEUS (DEUS).
Following the breach, the price of EQUAL tokens fell nearly 9.08%, hitting around $8.98 at press time, according to CoinMaketCap data.
EQUAL/USD 1-day price chart (Source: CoinMarketCap)
This incident was first noticed following the Equalizer team’s alert on X, warning users against interacting with the exchange. Subsequent investigations revealed the hacker’s wallet had been active for over 222 days, continuously receiving the illicitly transferred funds. In the wake of this event, the Equalizer team has issued specific guidance to its users on how to interact with the platform safely.
Please do not interact with https://t.co/pqN8aT6l2V front end at the moment. We are investigating and will report back.
— Equalizer (@Equalizer0x) May 14, 2024
Precautionary Measures and User Guidance
In response to the security incident, Equalizer has outlined several precautionary measures for its users to prevent further losses. The team has cautioned users to halt interactions if the decentralized app (dapp) prompts them to approve unknown contracts or interact with new contracts not listed in the official documentation.
Additionally, through their Discord channel, an Equalizer team member advised that users who have not interacted with the platform in the last six hours are likely safe. However, those who have are urged to revoke any approvals made during this time to safeguard their assets.
The team’s commitment to resolving the issue is evident as they continue to restore the main website. Meanwhile, users are advised to use the main website only until further notice. The team is also investigating the exact pathways through which the tokens were siphoned off to address vulnerabilities and prevent future breaches.
Don't use https://t.co/HpuDvYx5Sg for now. Please use these alternative Mirrors till thenhttps://t.co/4JEaLpOvu8 (Equalizer on Fantom)https://t.co/bvqpuk6VDu (Equalizer on Base)https://t.co/5ivVCX3M5e (Equity)https://t.co/hmELsa9X7L (CL Farms on Base & Fantom)Please…
— Equalizer (@Equalizer0x) May 14, 2024
Ongoing Response and User Support
As Equalizer navigates these challenging times, the team’s support and quick actions are crucial in mitigating the impact of the breach. They are actively working on multiple fronts: securing the platform, investigating the breach, and communicating regularly with their user base. The community is also warned about potential scams, such as the fraudulent Equalizer X account that falsely offered refunds to affected users.
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