Waves Labs Lost 97% Of Its Value In A 6-Month Cyberattack Last Year

Key Points:

• Until late December, intruders lurked inside Waves, putting client data at danger.
• The network is still reeling from an alleged theft on its lending protocol Vires Finance in April 2022, which cost investors more than $530 million after losing 97% of its value.
• The founder is aiming to resurrect the blockchain network and the Vires Finance lending arm.

Waves Labs suffered ‘financial loss’ as a result of a six-month-long attack.

In an interview, Waves founder Sasha Ivanov (Aleksandr Ivanov) stated that hackers broke into Waves Labs last year, destroying corporate data and causing “financial losses.” Hackers “sneaked into” Waves’ management software system and attempted to extort money from the floundering blockchain firm.

“We’ve been lurking in your system for half a year,” the hacker said Ivanov. So we know everything, and you owe us money.” Ivanov refused to reveal the particular financial losses caused by the cyber incident, nor did he share information on the stolen data. “The situation is very bad, and we may suffer even greater financial losses,” Ivanov stated. A breach of Wave’s internal systems could also expose user information.

Ivanov dodged the question of why the hack was not disclosed to the Waves community once it became public in December. “I didn’t cry because we’ve been in similar situations before,” Ivanov explained, without specifying what “similar situations” entailed. Ivanov speculated that the hacker attempted to pay out the stolen monies via a centralized exchange, although he did not specify which exchange.

The news is the latest twist in the saga of Waves, a layer 1 blockchain that was previously dubbed “Russian Ethereum” and reached a market valuation of $5.6 billion in April 2022.

The network is still reeling from an alleged theft on its lending protocol Vires Finance in April 2022, which cost investors more than $530 million after losing 97% of its value. Many of individuals who lost money have accused Ivanov of being the scheme’s primary architect, something he has constantly denied.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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