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Syndicate Labs confirms the attack was caused by a private key leak
Golden Finance reports that on May 1st, Syndicate announced the results of an investigation into the previous attack incident, which was caused by a private key leak.
The hacker upgraded cross-chain contracts on two chains after obtaining the private key, resulting in 18.5 million SYND tokens and other tokens worth $50k being stolen from the Commons bridge.
Syndicate stated that affected users will receive full compensation of 18.5 million SYND tokens and additional compensation.
Syndicate said that the private key was stored in a password manager, accessible to only a few people, but no additional encryption layer outside the password manager was used.
Additionally, Syndicate set up alerts and circuit breakers for the cross-chain bridge but did not cover the upgrade scenario.
Syndicate announced that measures are being taken to enhance security, including encrypting developer keys outside the password manager and further restricting access to these keys.