Decentralized Exchange Protocol Velodrome Suffers DNS Attack

According to Foresight News, decentralized exchange protocol Velodrome reported that its domain names, velodrome.finance and aerodrome.finance, were targeted in a DNS attack. Preliminary investigations estimate that users who interacted with the attacker's website may have lost up to $250,000. After implementing remedial measures, testing, and gathering user feedback, no traces of internal or external account leaks associated with Velodrome/Aerodrome or the registrar were found. The root cause of the attack was the use of social engineering by the attackers to gain control over the domain name accounts held by the registrar. This allowed them to bypass 2FA and other security mechanisms, enabling the attackers to change the domain name servers and redirect legitimate domain traffic to malicious clones of the Velodrome/Aerodrome websites.