Serenity Shield Gets Hacked And Loses Over $5 Million

Yesterday, a security breach occurred within the MetaMask wallet of Serenity Shield, resulting in the unauthorized transfer of over 7 million SERSH tokens. This incident caused a significant drop in the value of the token, sparking concerns among holders regarding the future of the platform.

Damage Control

The compromised wallet, which held liquidity for the SERSH token, belonged to Serenity Shield, a platform specializing in data storage solutions. The breach was announced via X (formerly Twitter), with approximately $5.6 million worth of SERSH tokens being transferred to a third-party wallet.

Following the hack, the price of SERSH plummeted by more than 90%, initially trading around $0.8 before falling sharply to $0.0073. Although the price briefly recovered above the $0.2 support level, it continued to decline, eventually settling in the $0.016-$0.017 range within 24 hours, marking a decrease of over 70% according to CoinMarketCap data.

In response to the security breach, all SERSH trading on centralized exchanges was suspended, and users were advised to not make any transactions on the PancakeSwap exchange as a precautionary measure. To safeguard the community, Serenity Shield proposed relaunching the SERSH token through a secure smart contract. Holders who acquired the token before the incident would be eligible for a 1:1 token replacement, limited to transactions conducted on decentralized exchanges and excluding those made after a specified snapshot timeframe.

Hacks Still Commonplace

Regarding transactions on CEXs, the team stated that they would collaborate with the respective platforms to devise a replacement process. Notably, a similar incident led the crypto gaming platform PlayDapp to migrate to the new PDA token after suffering a security breach.

Addressing community speculation, Serenity Shield clarified via Telegram that while the project itself had not been hacked, one of its hot wallets containing SERSH tokens had been compromised. Further investigation revealed a connection between the addresses involved in the hack and a previous security breach at the crypto exchange OKX in December 2023.

This incident underscores the ongoing challenges faced by the crypto community in 2024, prompting experts to advise vigilance against suspicious activities and links as scammers target prominent figures and projects within the crypto sphere.