Fuzzland Falls Victim to Insider Attack: A $2 Million Exploit
In a shocking turn of events, Fuzzland, a prominent player in the crypto space, has revealed that it suffered a significant insider attack in September 2024. The attack, which targeted the UnibtC protocol, resulted in a staggering loss of $2 million. What’s even more alarming is that the perpetrator was a former employee who had gained the trust of the company through a sophisticated social engineering tactic.
The Attack Vector: Social Engineering and Malware
The former employee, who had posed as an experienced MEV developer, managed to impress the company during the interview process and even demonstrated a functioning MEV bot. However, unbeknownst to Fuzzland, this individual had ulterior motives. They inserted a Trojan into the company’s Mev code base, using a malignant Rust box called Rands. The malware enabled persistent, undetected access to technical workstations for over three weeks, evading security instruments like Falcon and AVG.
A Timeline of the Attack
On September 4, 2024, the attacker modified the project file, automatically propagating the Trojan to frequently used IDEs like VScode and Jetbrain. It wasn’t until September 26, when Fuzzland discovered a vulnerability in UnibtC through a Dedaub report, that the attack was finally uncovered. Just over an hour later, the UnibtC protocol was exploited at 18:28 UTC, resulting in the significant loss.
Aftermath and Response
Fuzzland took full responsibility for the breach and reimbursed all affected parties. The company also initiated an investigation with the Web3 security company Zeroshadow and reported the incident to the FBI and Chinese law enforcement authorities. Despite the attack, Fuzzland’s TVL (Total Value Locked) has continued to grow, reaching $535 million in June 2025, up from $240 million in September 2024.
Enhanced Security Measures
In response to the attack, Fuzzland has implemented new internal controls and expanded its review procedures. These measures include on-site employees, detailed key reviews, and strict privilege separation. Sensitive systems are now isolated, and private keys are secured in trustworthy execution environments. The company has also integrated tools like CodeQL and Coderabbit to enhance its source code functions and implemented software material checks (SBOM) to detect malicious dependencies.
Industry-Wide Spike in Crypto Hacks
The crypto industry is experiencing a surge in hacks, with phishing and social engineering being the primary attack vectors. According to Certik, a blockchain security company, over $364 million was stolen in April 2025, representing a 1,163% increase from the previous month. The largest hack to date remains the Bitbit hack, which resulted in a staggering loss of $1.5 billion worth of ETH. Fuzzland’s experience serves as a reminder of the importance of robust security measures in the crypto space.
