The platform found itself ensnared in a cunning phishing ploy that directed unsuspecting users to a website, siphoning their financial resources once they unwittingly authorized a transaction. Galxe, in a remarkable display of commitment, is making amends by reimbursing affected users with a generous 110% compensation following a recent security breach, as officially declared on the 10th of October. “We wish to express our profound gratitude to those steadfast individuals who stand by our side during these challenging times,” the company conveyed.
The restitution process is set to unfold automatically on the 16th of October, channeling the funds back to their original wallet addresses, unless, of course, an alternative course of action is preferred by the affected users. As a gesture of goodwill, the reimbursement will be disbursed in Tether, with the valuation determined as of 10:00 am UTC on the 9th of October.
The impact of the security breach was felt most acutely by those users who had unwittingly endorsed transactions on the fraudulent website on the 6th of October. This malicious incursion persisted for a little over five harrowing hours.
In an initial estimate dated the 10th of October, staggering losses totaling over $396,000 were documented, varying from sums exceeding $53,000 to mere pennies. The company had previously estimated that approximately 1,120 users bore the brunt of this breach.
Charles Wayn, the co-founder of the platform, shared insights with Cointelegraph via a written response. He revealed that Galxe has initiated collaboration with two distinguished security firms, embarking on an arduous quest to trace the path of the purloined funds. Furthermore, the platform has fortified its domain name service security configurations, switched its domain provider, and initiated comprehensive security audits. Wayn elucidated, “The incident primarily stemmed from [domain registrar] Dynadot’s unexpected reset of our account information, unwittingly conferring authority to an imposter who submitted counterfeit documents purporting to be a legitimate member of Galxe.”
The Galxe protocol, distinguished as a permissionless self-sovereign identity infrastructure, encountered turbulence in its native GAL token’s valuation. It experienced a decline from $1.20 to $1.15 on the 6th of October. However, resilience was swift, with the token resurging to $1.21 over the ensuing weekend, driven by substantial trading activity during Saturday morning. As of the time of crafting this narrative, the GAL token had steadied at $1.16, as reported by CoinGecko.