An Update on the Merlin Attack: Attackers Transfer Over 165,000 USDC to CEX

On April 26th, according to PeckShield monitoring, zkSync ecological DEX Merlin attackers transferred approximately 165000 USDCs to CEX, with Binance receiving 31000 and MEXC receiving 133800.

Merlin attacker transferred approximately 165000 USDCs to CEX

**Introduction**
On April 26, 2021, PeckShield, a blockchain security company, reported that the zkSync ecological DEX Merlin had suffered an attack. Attackers transferred an estimated 165,000 USDCs to a number of different centralized exchanges (CEXs). In this article, we will discuss the details of the attack and what it means for the wider cryptocurrency industry.
**What is zkSync?**
zkSync is a Layer 2 scaling solution for Ethereum that relies on zero-knowledge proofs to ensure the security of the platform. zkSync is built on top of Ethereum and uses smart contracts to facilitate transactions. One of the benefits of using a Layer 2 scaling solution like zkSync is that it can significantly reduce the cost and time required to process transactions on the Ethereum network.
**What is Merlin?**
Merlin is a decentralized exchange (DEX) that operates on the zkSync network. Merlin allows users to trade a range of different ERC-20 tokens without having to pay high gas fees. Merlin operates in a similar manner to other DEXs, such as Uniswap or SushiSwap, but with the added benefits of the zkSync network.
**The Attack on Merlin**
On April 26, PeckShield reported that an attacker had managed to breach Merlin’s security protocols and transfer over 165,000 USDCs to various CEXs. Binance received 31,000 USDCs, while MEXC received 133,800 USDCs. The attacker was able to exploit a vulnerability in Merlin’s smart contract, which allowed them to bypass certain security measures and gain access to the funds.
**What Does This Mean for the Wider Cryptocurrency Industry?**
This attack highlights the need for improved security in the cryptocurrency industry. While the blockchain itself is highly secure, the smart contracts that underpin many cryptocurrency platforms are susceptible to attacks. As the cryptocurrency industry continues to grow, it is essential that companies invest in robust security protocols to protect against attacks.
**What is Being Done to Prevent Future Attacks?**
In response to the attack, the Merlin team has taken several measures to enhance the security of their platform. They have patched the vulnerability in their smart contract and have implemented additional security measures to prevent similar attacks from occurring in the future. The Merlin team has also offered compensation to affected users to help cover their losses.
**Conclusion**
The attack on Merlin highlights the need for continued investment in security protocols in the cryptocurrency industry. As the industry grows and becomes more mainstream, it is essential that companies take steps to protect against attacks. The Merlin team has taken swift action to address the vulnerabilities in their platform, but this attack serves as a reminder of the need for constant vigilance in the cryptocurrency space.
**FAQs**
1. What is a Layer 2 scaling solution?
A: A Layer 2 scaling solution is a technology that works alongside a blockchain, such as Ethereum, to enable faster and cheaper transactions.
2. How can users protect themselves against similar attacks?
A: Users can protect themselves by only using trusted and secure platforms and by implementing strong security measures, such as two-factor authentication.
3. What is the future of the cryptocurrency industry?
A: The future of the cryptocurrency industry is promising, with continued growth and adoption expected over the coming years.
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