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The Curve DAO token (CRV) took a sharp 7% hit following another DNS attack on Curve Finance. Although smart contracts remain secure, the breach has sparked concerns across the DeFi space.

DNS Attack Causes Price Dip in CRV

On May 13, Curve Finance issued a public alert on X (formerly Twitter), warning users that its DNS might be compromised. The platform advised against interacting with its website, noting that users could be redirected to a fake version designed to drain wallets.

We are switching to https://t.co/JJWhhq1fT0 domain name. Please interact with this one instead of curve [.] fi

— Curve Finance (@CurveFinance) May 13, 2025

This is the second DNS hack Curve has faced in just a week. Despite the setback, the Curve team emphasized that smart contracts are unaffected and remain fully secure.

As the news broke, the CRV token slipped to $0.7220, down 6.91% in the past 24 hours. While this drop is notable, CRV is still up 12% over the last week and 18% over the past month—signaling some resilience in the token.

Curve Finance Reassures Users Amid Crisis

The Curve team was quick to respond, highlighting their ongoing efforts to maintain trust. In a statement, they said:

Late last night, the curve [.] fi domain was compromised at the DNS level. This exploit redirected traffic to a malicious IP not associated with Curve Finance. No smart contracts or internal systems were breached—the protocol itself remains fully operational and secure.

User…

— Curve Finance (@CurveFinance) May 13, 2025

Earlier this month, on May 6, Curve’s X account was also compromised. However, the team confirmed that no funds were lost, and no phishing links resulted in user theft. All systems were quickly secured, and the incident was isolated.

How the DNS Hack Unfolded

According to Curve Finance, attackers hijacked their Domain Name System (DNS), redirecting users to a malicious IP. This means users visiting Curve.fi could unknowingly land on a clone site built to steal funds.

The issue wasn’t due to any vulnerability in the protocol itself. Instead, it was a case of DNS hijacking, where the web address points to the wrong server. Curve confirmed their account was protected with two-factor authentication, and no internal passwords were compromised.

The platform is now working with its domain registrar to regain control and prevent future attacks.

Community Reaction and Market Impact

Despite assurances, the breach impacted market sentiment. The CRV token’s 24-hour trading volume fell to $165.9 million, an 8% drop that reflects growing caution among investors.

While short-term confidence may be shaken, Curve’s quick response and continued transparency could help it recover. For now, however, the Curve DAO token remains under pressure from the fallout.