Shocking Web3 Security Breach: WebKeyDao Loses $73K as Hackers Exploit Smart Contract Flaw

WebKeyDao, a Web3 launcher platform, has suffered a cyberattack resulting in a loss of approximately $73,000. Hackers exploited a vulnerability in the smart contract’s buy function, allowing them to purchase 230 wkeyDao tokens for just 1,159 BUSD. They then sold these tokens on a decentralized exchange (DEX) for 13,167 BUSD, making nearly ten times their investment. This attack highlights the increasing blockchain security risk and the urgent need for stronger smart contract exploit prevention strategies.

How a Smart Contract Exploit Led to a 10X Profit

Blockchain security firm BlockSec Phalcon first detected the exploit, confirming that WebKeyDao’s vault contract at address 0xd511 allowed users to buy wkeyDao tokens at a fixed price. However, these tokens were trading for over 10x times that value on PancakeSwap, a popular decentralized exchange hack target. The attackers repeatedly purchased tokens at the undervalued rate and resold them at market price, draining significant funds from the platform.

This smart contract exploit occurred due to improper pricing logic and a lack of security audits. Poorly designed contract functions are common weaknesses in Web3 security breach incidents, often allowing attackers to control token values.

Why Web3 Security Risks Are Increasing

The WebKeyDao hack is part of a broader trend of increasing blockchain security risk incidents. Another hack happened recently where hackers took off transaction previews to trick users into authorizing destructive transfers. This attack led to a loss of 143.45 Ethereum (approximately $460,000).

The North Korean Lazarus Group exploited a supply chain vulnerability in Safe{Wallet}, embedding malicious JavaScript code that compromised Bybit’s Ethereum Multisig Cold Wallet. These incidents show how attackers are continually finding new ways to bypass security measures.

Implications and the Need for Stronger Security

The rise in Web3 security breach cases calls for better smart contract auditing, multi-layered security systems, and real-time monitoring. The February 2025 Web3 security report highlighted that projects lost millions due to blockchain security risk factors, including contract vulnerabilities, flash loan attacks, and phishing scams.

Security companies such as TenArmor’s ArgusAlert are creating early alert systems that track on-chain activity to identify suspicious transactions. Still, most projects continue to neglect security measures, exposing them to attacks. The WebKeyDao exploit, in particular, could have been avoided with a thorough contract audit. Experts recommend using multi-signature wallets, stricter verification processes, and transaction approval delays to minimize smart contract exploit risks.

What’s Next for WebKeyDao and Web3 Security?

WebKeyDao has not yet released a full report, but the platform is expected to implement stronger security measures. Possible steps include temporarily suspending trading, upgrading smart contracts, and working with security auditors to prevent future exploits.

For the broader Web3 industry, the key takeaways from these attacks are clear:

• Comprehensive smart contract exploit audits must be mandatory before launch.
• On-chain monitoring tools should be used to detect suspicious transactions in real time.
• Projects must anticipate potential attack vectors and design systems to minimize risks.
• Decentralized exchange hack prevention requires collaboration between exchanges and projects to prevent mispriced token exploits.

As Web3 continues to grow, security challenges will evolve. Without proactive measures, platforms risk financial losses, reputational damage, and declining user trust.

Web3 Faces Growing Threats from Hackers

As hackers are always discovering new Web3 security breach vulnerabilities to exploit, security audits, real-time threat detection, and user awareness need to be continued top priorities. Without these measures, the decentralized system will continue to be plagued by serious financial threats and reduce its adoption and growth.