In January 2024, there was a serious security breach at the decentralized financial platform Concentric.fi, operating on the Arbitrum network. The hacker attack resulted in the theft of approximately $1.6 million. The breach was discovered on January 22, when the attackers used sophisticated social engineering methods to gain access to the wallet of one of the key team members, allowing them to manipulate the protocol.

The Concentric.fi team confirmed the hack and began an investigation in collaboration with cybersecurity experts. They identified that the vulnerability lay in the ability to update the protocol's storage, which was exploited by the hackers to initiate the creation of new tokens and the withdrawal of funds.

PeckShield experts found out that the perpetrator managed to withdraw about $1.6 million in cryptocurrency, which were then converted into Ethereum and distributed to various addresses. Some of these addresses, according to analysts, are linked to the hacker who previously attacked the OKX cryptocurrency exchange.

As a result of the news of the hack, the value of Concentric.fi's native token (CONE) plummeted, showing a 57% decrease. This incident became another in a series of DeFi project hacks in 2024, including attacks on the Orbit Chain bridge and the Radiant Capital protocol, as well as a repeat hack of the CoinsPaid crypto payment platform.

The Concentric.fi team is currently working on remedying the aftermath of the hack and preventing similar incidents in the future, highlighting the importance of enhancing cybersecurity in the DeFi sector.