A decentralised cryptocurrency exchange, PancakeSwap, has been hacked.
The exchange alerted its users that their exchange may have been DNS hijacked, according to a message from PancakeSwap's official Twitter account. In a following tweet, the exchange confirmed this information. In the meanwhile, users were asked not to use the site and not to reveal their seed phrase with anyone, according to the exchange.
Changpeng Zhao of the Binance exchange also confirmed the report.
A "DNS hijack" occurs when a hacker redirects traffic to a malicious server; in this case, the "hijacked site" was looking for user credentials for the decentralised crypto exchange.
A decentralised exchange, unlike traditional cryptocurrency exchanges where assets are traded through a central authority, employs smart contracts to allow money to flow directly between dealers. Decentralized exchanges, also referred to as DeFi protocols, are non-custodial Bitcoin management solutions.
PancakeSwap's smart contracts have not been hacked in this situation. The attack was limited to the front-end of the website, and as long as the users' seed words are safe, so are their funds.
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