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Chainlink Operators Lose 700 ETH From Node Cyber Attack

Chainlink Operators Lose 700 ETH From Node Cyber Attack

Nine Chainlink nodes operators that function as a powerhouse for the decentralized finance (DeFi) protocol have been spam attacked, causing them to lose 700 ETH from their hot wallets.

Namely, these were T-Systems, 01Node, Anyblock Analytics, B-Harvest, ChainLayer, Everstake, Figment Networks, LinkPool, and Chainlink itself.

Certus One, another node operator, also reported a loss of 20 ETH.

According to a Chainlink spokesperson,

While this spam attempt did require Chainlink nodes to spend additional ETH, this need was quickly removed when the network properly addressed the spam.

The spokesperson said that the attacks on the network show the risks related to being a node operator characterized by how malicious actors embezzle in the cryptocurrency ecosystem.

Attackers purportedly capitalized on the gas produced by the node operators whenever they sent a price feed request via the network. Then, they increased the fee demand on the network by minting Chi tokens that were to be used for high gas cost and sold them for ETH. Finally, they used Tornado Cash to conceal the transactions.

Chainlink was quick to act against the attacks. Director of Community at Chainlink Labs Rory Piant announced that they were able to overcome the attack, and that they were able continue their operations despite the spam.

He added,

Node operators did pay additional ETH in gas costs to keep the network operational during the spam attempt because node operators properly prioritized their reputation scores and longer term standing in the Chainlink network over short term fee spikes.

As such, the network was able to fight off the attack, a feat that according to Piant, was something “the entire Chainlink community should be exceedingly proud of.”

Collins Adane is a writer who follows the crypto industry closely. He loves fish stew and Real Madrid. He believes in cryptocurrency’s potential to transform the money landscape in his native country Ghana.