QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
UNKNOWN
JUNE 2025
GLOBAL
ETHER FINANCE
DESCRIPTION OF EVENTS
Ether.fi is a decentralized finance (DeFi) platform focused on maximizing the utility of digital assets through staking, liquidity strategies, and crypto-enabled spending solutions. Its core mission is to empower users by giving them full control over their crypto while enabling them to save, grow, and spend within a robust, secure, and composable ecosystem. The platform currently boasts a total value locked (TVL) of over $6.88 billion, with several high-yield options such as 3.4% for staking, 9% from liquidity vaults, and 3% cashback through its crypto credit card.
Staking is the foundation of ether.fi’s offerings. Users can stake ETH, BTC, or stablecoins via value-accruing restaking tokens like weETH, eBTC, and eUSD. These allow holders to earn rewards while retaining liquidity and exposure to the underlying assets. Security is a top priority, with the platform being decentralized, audited, and battle-tested. The protocol is open source and supported by top-tier DeFi integrations including Aave, Pendle, and Gearbox.
The Liquid product automates yield strategies through smart vaults that auto-balance and compound returns across DeFi’s best-performing protocols. Users can choose vaults tailored to their asset types or risk profiles, maximizing returns with minimal management.
Ether.fi Cash introduces a non-custodial credit card with 3% cashback on all purchases. It integrates seamlessly with Apple Pay and Google Pay, offering global usage at over 100 million locations. This card is part of the platform’s goal to bridge DeFi with real-world utility.
Unfortunately, it appears that there was an issue with the security of the Discord server.
It appears that the promotion was promising users their Season 5 rewards, which would be sent to their dashboard automatically already.
It is unclear what users may have fallen victim to the posts on Discord.
The Ether Finance team posted an initial warning for users to avoid interacting with any links which were posted on their Discord channel.
Some users reported being kicked and unable to join the Discord after asking if the server was compromised.
There is no mention of anything being done to assist anyone affected.
Ether Finance has not yet published a full post-mortem. It is unclear what the vulnerability was or what steps were taken to resolve it.
Ether.fi is a decentralized finance (DeFi) platform that enables users to stake, earn, and spend crypto securely through products like restaking tokens, automated liquidity vaults, and a non-custodial crypto credit card offering 3% cashback. With over $6.88 billion in total value locked, it supports ETH, BTC, and stablecoins, emphasizing decentralization, security, and seamless integration across top DeFi protocols. However, a recent incident involving a compromised Discord server raised security concerns. Users were warned not to interact with suspicious links, but reports suggest some were removed from the server, and no formal post-mortem or user support response has been released yet.
Ether Finance - "Please do not interact with any links in the http://ether.fi Discord. We’re investigating and will provide an official update shortly." - Twitter/X (Jun 16)
Ether Finance - "The situation is contained. We are actively monitoring the channel and ask users to tag us should they see suspicious behavior. We will release more details as they’re confirmed." - Twitter/X (Jun 16)
KThunder13 - "Pretty sure that the @ether_fi discord server has been hacked! Do not interact with any links!" - Twitter/X (Jun 16)
UgHaseong - "$ETHFI @ether_fi discord got hacekd. Please do not interact witb any links in discord. Stay tune official announcement. STAY SAFE frens" - Twitter/X (Jun 16)
Y J - "Got banned on @ether_fi discord for saying their discord channel is posting scam links…. Nice…." - Twitter/X (Jun 16)
@CoinnessGL Twitter (Jun 16)
@CoinnessGL Twitter (Jun 16)
@bpaynews Twitter (Jun 16)
Pablo - "@ether_fi it looks like your discord is compromised" - Twitter/X (Jun 16)
Pablo - "@lynk0x @ether_fi discord is compromised I’m trying to bring awareness but nobody is paying attention please post they kicked me from the discord idk who’s owner but I’m trying to save people money" - Twitter/X (Jun 16)
Yuelle5 - "your discord is hack" - Twitter/X (Jun 16)
vBlueX2 - "posted it and they deleted it and kicked me out off discord" - Twitter/X (Jun 16)
@SkeetSkeetNGo Twitter (Jun 16)
@br1dge_eth Twitter (Jun 16)
@highleyvarlet Twitter (Jun 16)
@CoinRank_io Twitter (Jun 16)
@SkeetSkeetNGo Twitter (Jun 16)
@LosKruptos Twitter (Jun 16)
@Yuelle5 Twitter (Jun 16)
Mahalka Priyansh - "@ether_fi Discord is compromised , Be safe. Season 5 rewards will be sent to your dashboard within a week, don't click on any link to get access to airdrop" - Twitter/X (Jun 16)
@DefiProwl Twitter (Jun 16)
Etherfi (Oct 25)
Etherfi (Oct 25)
Getting Started (Oct 25)
Introduction (Oct 25)
