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web3 is going just great
@web3isgoinggreat.com
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tracking only some of the many disasters happening in crypto, defi, NFTs, and other blockchain-based projects since 2021 • created by @molly.wiki

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Elixir shuts down deUSD after Stream Finance halt

November 6, 2025
https://www.web3isgoinggreat.com/?id=elixir-shuts-down-deusd
Elixir shuts down deUSD after Stream Finance halt After the defi yield platform Stream Finance announced a $93 million loss, Elixir announced it would be discontinuing its deUSD synthetic stablecoin. Stream Finance owes $68 million to Elixir, and holds around $75 million deUSD. Elixir has announced that they plan to allow deUSD holders to redeem their tokens for USDC through a process that will also eliminate the risk of Stream Finance cashing out their deUSD without repaying their loan. According to Elixir, "Stream comprised of 99%+ of the lending positions (and has decided to not repay or close positions)".
November 7, 2025 at 3:31 PM
web3isgoinggreat.com
Moonwell accrues almost $3.7 million of bad debt after oracle malfunction

November 4, 2025
https://www.web3isgoinggreat.com/?id=moonwell-oracle-malfunction
Moonwell accrues almost $3.7 million of bad debt after oracle malfunction The Moonwell lending protocol, built on the Base Ethereum L2, wound up with $3.7 million in bad debt after an attacker took advantage of an oracle malfunction that caused the price of wrsETH to be massively inflated. The Chainlink oracle used by the project erroneously reported that a single wrsETH token (Kelp DAO's wrapped restaked ETH) was priced at around 1.65 million ETH (~$5.8 billion). Within 30 seconds of the oracle reporting bad data, an attacker took advantage of the error to borrow huge amounts of tokens, which they then swapped to other tokens to cash out. Ultimately the attacker profited around 295 ETH (~$1 million), but the protocol was saddled with significantly more bad debt that the team will now have to grapple with.
November 7, 2025 at 3:12 PM
web3isgoinggreat.com
Stream Finance halts activity after $93 million loss

November 4, 2025
https://www.web3isgoinggreat.com/?id=stream-finance-loss
Stream Finance halts activity after $93 million loss The Stream Finance defi yield project announced that "an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets." Stream announced that they were in the process of withdrawing remaining liquid assets, and had halted all deposits or withdrawals. They also announced they had retained a law firm to investigate the "incident". The project didn't disclose who the fund manager was, or the circumstances in which the "loss" occurred. The Staked Stream USD token depegged on November 3, and crashed further following the announcement.
November 4, 2025 at 3:43 PM
web3isgoinggreat.com
Garden hacked for $11 million

October 30, 2025
https://www.web3isgoinggreat.com/?id=garden-hacked-for-11-million
Garden hacked for $11 million The Garden bitcoin bridge suffered a roughly $11 million loss after one of its solvers was compromised. These solvers essentially act as market makers for the protocol. Some blockchain sleuths have questioned whether the affected solver, which Garden described as a separate entity, may actually be operated by the same team as Garden. There wasn't much sympathy to be had for Garden after this exploit. The protocol had recently announced hitting a milestone of bridging more than $2 billion in assets, but the celebration was criticized after zachxbt pointed out that a substantial portion of the bridged funds were proceeds of crimes being laundered to evade detection and recovery.
November 3, 2025 at 6:28 PM
web3isgoinggreat.com
Balancer exploited for at least $110 million

November 3, 2025
https://www.web3isgoinggreat.com/?id=balancer-exploit-2
Balancer exploited for at least $110 million The defi protocol Balancer suffered a major exploit that drained over $110 million across several blockchains, including Ethereum, Polygon, Base, and Sonic. Attackers exploited faulty access control in the manageUserBalance function of Balancer's v2 smart contract, enabling unauthorized internal withdrawals. The stolen tokens included 6,850 osETH, 6,590 wETH, and 4,260 wstETH, later consolidated into new wallets likely for laundering. The exploit also impacted forked protocols like Beets Finance, which lost around $3 million. Balancer's BAL token dropped over 10% following the theft. This was Balancer's third major security incident since 2020, despite prior audits by OpenZeppelin and Trail of Bits.
November 3, 2025 at 3:29 PM
web3isgoinggreat.com
Cryptomus fined $127 million for compliance failures

October 22, 2025
https://www.web3isgoinggreat.com/?id=cryptomus-fine
Cryptomus fined $127 million for compliance failures The Canadian cryptocurrency exchange Cryptomus has been fined CA$177 million (US$127 million) by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for failing to report more than 1,000 suspicious transactions linked to darknet markets, distribution of child sex abuse material, fraud, ransomware, and sanctions evasion. It additionally failed to report more than 7,500 transactions originating from Iran, and more than 1,500 high-value transactions. Cryptomus was temporarily banned from trading in British Columbia in May. The CA$177 million fine smashes Canada's previous record for the largest penalty they've ever imposed. That honor previously went to KuCoin, another crypto exchange fined CA$20 million (US$14.3 million) in September.
October 28, 2025 at 6:08 PM
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Fortress Trust is insolvent

October 22, 2025
https://www.web3isgoinggreat.com/?id=fortress-trust-insolvency
Fortress Trust is insolvent Nevada's Financial Institutions Division has issued a cease and desist order against Fortress Trust, stating that the firm is "on the verge of insolvency". The company admits it "failed to safeguard assets under its custody and is unable to meet all customer withdrawals". The company has only around $1.3 million in actual assets in custody, while it owes customers around $12.3 million. In 2023, Fortress experienced a $15 million theft. Though the company originally announced it would be acquired by Ripple, which had agreed to cover the shortfall, the deal eventually fell through. It's not clear how — or if — the funds were ever restored. Fortress's insolvency has strong parallels to that of Prime Trust, another trust company that shares a founder in Scott Purcell. NFID issued a cease and desist to Prime Trust in June 2023 after finding the company was insolvent; in bankruptcy proceedings, that company later blamed much of the insolvency on losing access to a
October 27, 2025 at 11:59 PM
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Paxos accidentally mints more than twice the global GDP in PayPal stablecoins

October 15, 2025
https://www.web3isgoinggreat.com/?id=paxos-accidental-mint
Paxos accidentally mints more than twice the global GDP in PayPal stablecoins Paxos, the issuer of PayPal's PYUSD stablecoin, accidentally minted 300 trillion of the supposedly dollar-pegged token. For context, this is approximately 2.5x the global GDP, and around 125x the total number of US dollars actually in circulation. Paxos later announced that the mint was an "internal technical error", and that they had burned the excess tokens. While PayPal promises its customers that "Reserves are held 100% in US dollar deposits, US treasuries and cash equivalents – meaning that customer funds are available for 1:1 redemption with Paxos," there clearly isn't much in the way of safeguards to ensure that is always the case. As with most stablecoin issuers, Paxos merely issues self-reported and unreviewed portfolio reports, and monthly third-party attestations (not audits) of reserves.
October 15, 2025 at 9:37 PM
web3isgoinggreat.com
Hyperliquid user loses $21 million to private key leak

October 10, 2025
https://www.web3isgoinggreat.com/?id=0x0cdc-theft
Hyperliquid user loses $21 million to private key leak An attacker apparently obtained access to a victim's private key, enabling them to drain $21 million in various crypto assets. The attacker quickly bridged the stolen funds to ETH, then bounced through various addresses in hopes of disguising their origin and making the funds more challenging to recover. Some originally feared that the theft was enabled by an exploit on Hyperliquid itself, shortly after another Hyperliquid-based project was compromised, but the theft appears to have been a key leak rather than an exploit on the protocol.
October 14, 2025 at 11:30 PM
web3isgoinggreat.com
Reddit shuts down its NFT avatars project

August 28, 2025
https://www.web3isgoinggreat.com/?id=reddit-shuts-down-nft-avatars
Reddit shuts down its NFT avatars project Three years after launching "Collectible Avatars", the NFT project they didn't want to call "NFTs" because they were already becoming kind of cringe, Reddit has decided to pull the plug. "Well, this is one of those posts. The kind that we hoped we would never have to write," they wrote. Reddit has ended submissions for new avatars, and will shut down its avatar shop, collection display on profiles, and NFT wallet feature. The feature is apparently so unused that the shutdown announcement garnered zero comments in the r/CollectibleAvatars subreddit. Besides posts relating to the shutdown, the most recent post in the subreddit was a year old. This is the second blockchain-based feature Reddit has sunset, following the October 2023 decision to end their "Community Points" feature.
October 14, 2025 at 10:52 PM
web3isgoinggreat.com
Abracadabra loses more "Magic Internet Money" to third hack in two years

October 4, 2025
https://www.web3isgoinggreat.com/?id=abracadabra-exploit-3
Abracadabra loses more "Magic Internet Money" to third hack in two years In their third major hack in two years, the Abracadabra defi lending project lost $1.8 million of their Magic Internet Money stablecoin. An attacker took advantage of a bug in the project smart contracts to borrow more than their provided collateral would normally allow. The attack was funded via Tornado Cash, and the exploiter then swapped the stolen tokens for ETH and laundered them back through Tornado. The project disclosed the theft, describing the exploit as affecting "some deprecated contracts". They downplayed the theft, saying they'd bought back the stolen assets using treasury funds. Abracadabra previously suffered a $13 million theft in March 2025, and a $6.5 million theft in January 2024.
October 6, 2025 at 1:53 PM
web3isgoinggreat.com
SBI Crypto likely suffers $21 million theft

September 24, 2025
https://www.web3isgoinggreat.com/?id=sbi-crypto-theft
SBI Crypto likely suffers $21 million theft Crypto sleuth zachxbt observed $21 million in "suspicious outflows" from SBI Crypto, a crypto mining subsidiary of the Japanese SBI Group. The money was quickly laundered through instant exchanges and Tornado Cash, in ways zachxbt observed were similar to tactics of North Korean crypto thieves. SBI Crypto has not made any public statements addressing the apparent theft.
October 2, 2025 at 4:36 PM
web3isgoinggreat.com
Griffin AI exploited for $3 million one day after launch

September 24, 2025
https://www.web3isgoinggreat.com/?id=griffin-ai-exploit
Griffin AI exploited for $3 million one day after launch One day after Griffin AI launched its GAIN token on Binance Alpha, an attacker minted 5 billion fake GAIN tokens on the Ethereum blockchain, then exploited a cross-chain endpoint to trick the bridge to the Binance chain into recognizing them as the real thing. The attacker was only able to sell a small fraction of their tokens, but they made off with approximately $3 million as the token plunged in price. According to CEO Oliver Feldmeier, the exploit was enabled by "a misconfigured layer Zero (cross-chain messaging) set-up and compromised key". Griffin AI promises to allow customers to "build, deploy, and scale autonomous AI agents for crypto finance". These are essentially AI-powered bots that perform various functions — some of Griffin's advertised examples include a "robo-adviser" to provide "tailored investment strategies", and bots to do arbitrage trading or manage staked assets.
September 30, 2025 at 8:53 PM
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Futureverse announces restructuring two years after raising $54 million

September 29, 2025
https://www.web3isgoinggreat.com/?id=futureverse-announces-restructuring
Futureverse announces restructuring two years after raising $54 million In 2023, there was no shortage of buzzy press coverage for Futureverse, which promised to build a metaverse and gaming-focused blockchain. They partnered with Ready Player One author Ernest Cline to build the "Readyverse". They partnered with the estate of Muhammad Ali to build an "AI-powered" boxing game (with NFTs!) They partnered with Rebook to build a "virtual sneaker design experience", where customers could design sneakers to equip to their Fortnite or Roblox characters. That year, the company had raised $54 million in a Series A round led by 10T Holdings and Ripple Labs. They made even more money from token sales to retail investors. As recently as this year, Futureverse was earning spots on "most innovative company" lists. In April, they announced they'd be acquiring Candy Digital, an NFT company created by Mike Novogratz, Gary Vaynerchuk, and others (which itself had raised a $100 million series A in 2021 But now, Futureverse has announced they've "made the difficult decision to begin a restructuring of the business". Focusing only on the AI portion of their business, and conspicuously omitting any mention of blockchains, NFTs, or metaverses, the company says they "recognize that adjustments are needed to ensure the long-term sustainability of our vision." Futureverse locked comments on the post, likely to try to dodge angry community members who accused the company of stealing from them or rug-pulling.
September 30, 2025 at 8:17 PM
web3isgoinggreat.com
Hypervault rug pulls for $3.6 million

September 26, 2025
https://www.web3isgoinggreat.com/?id=hypervault-rug-pull
Hypervault rug pulls for $3.6 million Only days after the Hypervault yield farming platform announced on Twitter that they'd surpassed $5 million in total value locked, the platform suddenly shut down its website and social media accounts. Simultaneously, the crypto security firm PeckShield observed an "abnormal withdrawal" of a large quantity of various crypto assets priced at around $3.6 million, which were swapped to 752 ETH (~$3.1 million) and laundered through Tornado Cash. The project had attracted customers by advertising yields of 76–95%.
September 30, 2025 at 7:45 PM
web3isgoinggreat.com
Seedify launchpad project suffers bridge exploit

September 23, 2025
https://www.web3isgoinggreat.com/?id=seedify-bridge-exploit
Seedify launchpad project suffers bridge exploit An attacker exploited bridges for SFUND, the token issued by the Seedify launchpad and incubator. It appears the exploiter has profited around $1.7 million from the theft. Seedify issued a statement announcing the theft, and said the bridge contracts that were exploited had been deployed for three years. The SFUND token crashed in price by around 80% before recovering somewhat. Seedify has been a launchpad for blockchain games, NFT projects, and other web3 products. The team has recently has embraced "vibe coding" — a practice in which people rely heavily on AI to generate code.
September 23, 2025 at 4:19 PM
web3isgoinggreat.com
UXLINK exploited for around $28 million, then hacker gets phished

September 22, 2025
https://www.web3isgoinggreat.com/?id=uxlink-exploit
UXLINK exploited for around $28 million, then hacker gets phished The "AI-powered web3 social platform" UXLINK was exploited by an attacker that gained control of the project's multisignature wallet, then minted billions of the project's UXLINK token. Though the tokens were worth hundreds of millions of dollars on paper, low liquidity and a crashing token price means the attacker cashed out around $28 million. Shortly after the hack, the attacker apparently approved a phishing contract, perhaps in their rush to swap tokens before the price crashed further or before exchanges could freeze the tokens. Around 542 million of the UXLINK tokens were sent to a phishing address as a result, though it doesn't appear the phishing wallet has been able to sell the tokens.
September 23, 2025 at 3:57 PM
web3isgoinggreat.com
Yala stablecoin depegs after theft

September 14, 2025
https://www.web3isgoinggreat.com/?id=yala-stablecoin-depegs
Yala stablecoin depegs after theft The YU bitcoin-backed stablecoin list its intended dollar peg after what they described as "an attempted attack", later writing that there was an "unauthorized transfer of funds". Although they initially wrote that "All funds are safe", they later stated that they "identified the stolen assets on-chain and are actively working with law enforcement to pursue recovery." Research firm Lookonchain observed a large mint of the YU token that may have been related — if so, the attacker successfully stole at least 1,501 ETH ($6.75 million), and holds a substantial quantity of YU they still haven't sold. Despite the project's attempted reassurances, the YU stablecoin lost its $1 peg, plummeting as low as around $0.20. As of writing, about a day later, the stablecoin is still well below its peg, at around $0.94.
September 15, 2025 at 6:27 PM
web3isgoinggreat.com
Thorchain founder exploited for $1.35 million

September 9, 2025
https://www.web3isgoinggreat.com/?id=thorchain-founder-exploited
Thorchain founder exploited for $1.35 million John-Paul Thorbjornsen, the founder of Thorchain and Vultisig, suffered a wallet drain, reportedly after experiencing a video meeting scam from an attacker who had exploited the Telegram account belonging to one of his friends. According to JP, the scammer used a malicious video call link to place malware on his computer, which then exfiltrated private keys for one of his crypto wallets. Some questioned whether he had made up the story, as he immediately began using the story to promote his Vultisig product. Later that week, Thorbjornsen apparently suffered another loss — this one confirmed on-chain to be around $1.35 million. According to crypto sleuth zachxbt, the attackers appeared to be a part of North Korean crypto hacking operations. "JP is one of the people whose has greatly benefited financially from the laundering of DPRK hacks/exploits. So it’s a bit poetic he got rekt here by DPRK," he wrote.
September 15, 2025 at 4:56 PM
web3isgoinggreat.com
Shibarium bridge hit with $2.4 million flash loan attack

September 12, 2025
https://www.web3isgoinggreat.com/?id=shibarium-bridge-hit-with-2-4-million-flash-loan-attack
Shibarium bridge hit with $2.4 million flash loan attack A bridge for Shibarium, the layer-2 network for the Shiba Inu project, was exploited for approximately $2.4 million in funds. The attacker bought 4.6 million BONE tokens (the governance token for Shibarium) using a flash loan, then used compromised validator signing keys to take control of the majority of validator power. Then, they used that control to drain around 225 ETH and 92.6 billion SHIB, together priced at around $2.4 million at the time of the theft. The project has paused staking on the network, freezing the BONE tokens borrowed by the attacker, which may limit the attacker's profits.
September 15, 2025 at 4:41 PM
web3isgoinggreat.com
$41.5 million stolen from SwissBorg in Kiln API exploit

September 9, 2025
https://www.web3isgoinggreat.com/?id=swissborg-exploit
$41.5 million stolen from SwissBorg in Kiln API exploit Thieves stole 192,600 SOL (~$41.5 million) from a wallet belonging to the Swiss cryptocurrency exchange SwissBorg. The attack is being blamed on a vulnerability in the API of Kiln, a staking partner used for SwissBorg's "Earn" program. SwissBorg announced that they would be reimbursing impacted customers using treasury funds, and working with security firms and law enforcement to try to recover the stolen assets.
September 9, 2025 at 3:48 PM
web3isgoinggreat.com
Massive NPM supply chain attack puts crypto transactions at risk

September 8, 2025
https://www.web3isgoinggreat.com/?id=massive-npm-supply-chain-attack-puts-crypto-transactions-at-risk
Massive NPM supply chain attack puts crypto transactions at risk After a JavaScript developer's NPM account was compromised in a phishing attack, attackers used it to upload malicious versions of heavily used JavaScript color and debugging libraries, as well as simple utilities that do things like strip-ansi or determine if a variable is-arrayish. Altogether, the packages get around two billion downloads per week, and the compromise is being called the largest the "largest supply chain attack in history". Once the malicious code is injected, it then intercepts network traffic and API calls, scanning for cryptocurrency transactions across numerous blockchains. When a network request is made to transfer crypto, the malicious code intercepts it and replaces the destination with wallets controlled by the attackers. Various prominent people in crypto have warned about the attack, with Ledger CTO Charles Guillemet tweeting: "If you use a hardware wallet, pay attention to every transaction before signing and you're safe. If you don't use a hardware wallet, refrain from making any on-chain transactions for now."
September 8, 2025 at 7:48 PM
web3isgoinggreat.com
Nemo Protocol exploited for $2.4 million

September 7, 2025
https://www.web3isgoinggreat.com/?id=nemo-protocol-exploit
Nemo Protocol exploited for $2.4 million The Nemo Protocol on the Sui blockchain suffered a $2.4 million exploit. The defi yield infrastructure protocol acknowledged the theft shortly after, explaining they had paused the protocol smart contracts as they investigated the theft. It appears the thief was able to manipulate a price oracle, siphoning $2.4 million in USDC from the project. They then bridged the funds from Arbitrum to Ethereum.
September 8, 2025 at 4:34 PM
web3isgoinggreat.com
Venus Protocol user exploited for $13.5 million

September 2, 2025
https://www.web3isgoinggreat.com/?id=venus-protocol-user-exploited
Venus Protocol user exploited for $13.5 million A user of the Venus Protocol borrowing and lending platform was successfully phished by an attacker who gained access to their account and drained $13.5 million in stablecoins and wBETH. The user signed a malicious transaction, approving the attacker's address for token withdrawals. Venus paused the protocol as they investigated the theft. The project then proposed a vote to force liquidation of the attacker's wallet and recover the stolen funds.
September 2, 2025 at 9:24 PM
web3isgoinggreat.com
Bunni decentralized exchange exploited for $8.4 million

September 2, 2025
https://www.web3isgoinggreat.com/?id=bunni-exploit
Bunni decentralized exchange exploited for $8.4 million The Bunni decentralized exchange was exploited for approximately $8.4 million across the Unichain Ethereum layer 2 network and the Ethereum mainnet. Bunni acknowledged the theft and paused the protocol shortly after the attack.
September 2, 2025 at 3:09 PM