After the attack that PAID token decreased by 85%, Paid Network team completed a post-mortem investigation report
Paid Network, the DeFi platform targeting real-world businesses, has suffered from attackers who proceeded to upgrade to a new smart contract that had the ability to burn and re-mint tokens. This caused the PAID token price to lose 85% of its value.
PAID Network hacked, PAID dump 85%
Although the attacker had raised close to $ 180 million in PAID coins at the time of the incident, the actual amount was much less. Attackers can only sell a small amount of PAID to ETH at a high price, the rest is subject to an 85% token dump.
EDIT:
Total PAID left in account: 56,970,542.571
= $24,313,147https://t.co/QhyqZQJdSt— vasa (@vasa_develop) March 5, 2021
The attack on PAID was similar to that on the Cover insurance protocol that took place in late December of last year. At that time, Cover Protocol was taken advantage of the vulnerability, the COVER token “faded” more than 90% of its value.
The PAID Network development team reassured users, saying that there will be a remedy soon.
We are investigating the issue. We pulled liquidity, are creating a new smart contract, & will be restoring everyone’s original balances to before the hack.
Those with staked, Lpool & UniFarm $PAID will have their tokens be sent to them manually.
We will share more updates soon
— PAID NETWORK (@paid_network) March 5, 2021
However, the community speculates that the incident was not hacked, but “rug pull” – a term referring to a member of the team that designed the contracts to exploit and use the user’s money for the sake of self. An analyst said PAID’s deployment contract had been transferred ownership to the attacker shortly before the incident. This shows that the team member, for some reason, allowed the attack to take place.
Please refer to the @paid_network official channels for further updates.https://t.co/Dk3vXWd8Q1
— fomosaurus ? (@fomosaurus) March 5, 2021
Additionally, risk analysis account DeFi @WARONRUGS correctly warned that PAID Network could be hacked at the end of January.
At the present time, the PAID Network team has also released a report, summarizing the information of the yesterday’s attack.
Dear PAID community, we have finalized our post-mortem investigation report on the attack we experienced March 5, 2021.
Please note we will continue to update our community with new information and developments as the situation develops.
Read here: https://t.co/avPk5s7CSf
— PAID NETWORK (@paid_network) March 7, 2021
And to minimize the losses, the PAID team decided to:
Relaunching the token contract to wipe out the attacker tokens:
The team is relaunching the PAID token contract to invalidate the attacker’s tokens. The attacker’s $PAID will be removed from the token supply. v2 $PAID tokens will be airdropped to holders of the v1 token, the details of which are being carefully considered to ensure the fairest outcome.
Moving contract control to a multisig
All future contracts will be controlled by a multisig, controlled by members of the PAID Network C-level team. Never again will PAID Network be vulnerable to the compromise of a single private key, and all contract changes will have to be cleared by the multisig key holders.
Comprehensive security and process audits
In the near future, the team will conduct security process checks and seek experts on information technology security best practices.
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