Socket Tech security breach affects multiple dapps and wallets

The bridging protocol is integrated into other services, but only for users granting unlimited approval

article-image

Blockworks

share

Cross-chain infrastructure protocol Socket.Tech suffered an exploit on Jan. 16, affecting various Web3 apps.

The attack targeted the Bungee Exchange, a frontend to the Socket Protocol which bridges between Ethereum and 12 EVM chains, resulting in a loss of about $3.3 million.

A hacker exploited a vulnerability in the SocketGateway part of the system, which allowed them to take money from users who had given permission to that component, without the users’ knowledge or consent.

Blockchain security firm PeckShield first reported the theft at 2:26 pm ET, which was then confirmed by Socket Tech about 30 minutes later.

Read more: ‘Wallet drainer’ code added to Ledger library has crypto on edge

Only a subset of users who interacted with a vulnerable bridging route added to the protocol in recent days and granted the gateway access to an unlimited amount of tokens were affected — about 200 victims based on a dashboard created on Dune Analytics.

The worst hit wallet saw $656,000 USDC drained to the attacker’s wallet, which then swapped all stablecoins into ether, an asset that cannot be frozen.

The attacker, whose wallet was funded from privacy-preserving exchange FixedFloat, essentially found a weak spot in how the system checked and processed user data, using this to illicitly access and transfer funds.

The route was subsequently disabled to prevent further exploitation, and service to the protocol was restored after about 6 hours.

Loading Tweet..

In addition to Bungee, Socket’s bridging protocol is employed by third-party dapps such as wallets from Rainbow and Zeal, however both these prevented downstream effects by only invoking approvals for specific asset values in a transfer — which is considered best practice.

Loading Tweet..

Rainbow wallet recommended users revoke permissions using the Revoke Cash tool, out of an abundance of caution.

The Socket team has promised a full post-mortem analysis, and said its other “top priorities” are “doing right by our users” and “recovery of funds.”

“We are deeply sorry for the turbulence caused,” they said.

Updated Jan. 26 at 6:35 am ET: The estimated tally of victims was revised lower after publication, closer to 200 than 700 as initially reported.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (1).jpg

Research

Jupiter has emerged as the undisputed liquidity backbone of Solana, commanding over 90% of spot DEX aggregation and 80% of perp trading volume. But behind the numbers lies a far more ambitious play: a cross-chain, vertically integrated super-app spanning swaps, synthetics, NFTs, memecoins, and launchpads. This report explores Jupiter’s rapid rise, the monetization upgrades reshaping its revenue profile, and the risks that could unwind its dominance, from token dilution to competition. With annualized revenues nearing $300M, the upside is undeniable, if it can navigate the turbulence.

article-image

Financial advisers in a January survey said equity ETFs were their top choice for gaining crypto exposure in 2025

article-image

“Why put a target out there that’s really speculative, not knowing exactly where this environment is going to go?” CarMax CEO Bill Nash said

article-image

While the head of Base may support legal sex work, Coinbase policies prohibit said workers from using its exchange.

article-image

EVM bottlenecks fundamentally hold back Ethereum’s scalability

article-image

In 2011, WikiLeaks faced a financial blockade imposed by the US government. It was Bitcoin’s first major test.

article-image

Kado’s founder Emery Andrew spoke to Blockworks about the acquisition and what’s next for the team