Chainswap : Another Defi Exploit

Second attack on chainswap within a month, just on July 2, chainswap incurred $800,000 worth of damages. Currently they are facing an $8 million worth of losses. ChainSwap is a platform that bridges between Ethereum and Binance SmartChain. It has been reported that the address of the attacker now holds $4.4 million. This was because the attacker took control of the BSC WILD contract due to chainswap protocol vulnerability.

They directed the tokens to their address and sold them through pancakeswap. This vulnerability enabled the attackers to mint about 20,000,000 WILD token.

That’s really wild. pun intended

Chainswap of course realizing their protocol has been tampered with and vulnerable, advised and urge their investors not to buy the native token ASAP. They also assured their investors that their funds are safe but they had to pull out liquidity. Pulling out liquidity means that their investors balance will show a value of $0. After a while they put back the liquidity but disabled the send and receiving functions. They are also sending compensation to every ASAP holders affected.

Most defi platforms should be using these other defi exploits as a means to learn and give more security to their protocol. Cyber criminals will always try to get smarter and find new ways to hack and attack. It’s the defi platforms job to outsmart them.

Posted Using LeoFinance ^Beta