Casper Network Shut Down to Address Critical Security Issue

Casper Network, an acclaimed blockchain platform, has for the first time suspended all its operations due to a security incident.

The decision was made by the Casper Network team, Casper Association, CasperLabs, and network validators to stop the exploitation of the vulnerable opcode. This is because it is a rapid response that helps in safeguarding accounts and the overall network until the problem is solved.

Casper Association, Casper Labs and the Validators/community are actively working to resolve the issue. The network has been halted and the security breach is contained. The issue has been identified and a solution is being worked on. Further updates will be provided.

— Casper (@Casper_Network) July 27, 2024

Immediate Actions Taken

Upon identifying the breach, the Casper Network team moved quickly to mitigate the threat. Validators quarantined transactions at the block 3,329,418 in the era 14544 which implied that all the network activities such as transfer, minting, and staking were suspended. This measure helps to prevent any further activities until the vulnerability is completely addressed.

Casper Network’s official communication channels have informed the community that the breach is still being investigated but is not widespread. The team has agreed to prepare a thorough post-mortem report and if there are any code changes, the team will share it on the GitHub page once the issue is fixed.

Limited Account Impact

According to the preliminary data, the attack affected several large accounts only. The specifics of the attack and the amount of harm done are still under evaluation. However, Casper Network has ensured that all measure has been taken to protect the user accounts and put a stop to further vices on the network.

However, the trading of $CSPR, that is the native cryptocurrency of the platform, remains open in exchanges even with the halt of the blockchain activities. This decision is to support liquidity and to allow token holders to continue using the token while the network sorts the issues with security.

Community and Developer Response

Casper community including other validators and developers are also trying to find a solution to the problem. This coordinated response shows the communities’ desire to ensure that the network remains secure and intact.

Casper Network officials said that they are doing everything they can to solve the breach. They have assured the community that they will be informed and that any necessary changes will be made to avoid future occurrences.

Broader Cryptocurrency Concerns

This attack on the Casper Network is another episode in the series of the recent security breaches in the cryptocurrency space. For instance, Scroll Network’s lending protocol, Rho Markets, has been closed down because of the activities that were deemed to have arisen from an Oracle control vulnerability. 

Allegedly, hackers were able to get into the pools, such as USDC linked to USDT, and the funds lost are said to be around $7.6 million and spread across different chains.

Moreover, another incident of hack was reported at the Indian cryptocurrency exchange, WazirX, where around $230 million was stolen. The platform has presented a rather detailed recovery plan that includes a pro-rata socialized loss approach for the affected users.