ChainSwap suffered an exploit last night, resulting in $8 million worth of losses
After the second exploit in 9 days, over 14 tokens listed on the ChainSwap bridge have dropped 99%. The company insists: funds from individual wallets are safe.
ChainSwap exploited: Projects using the bridge protocol crashed 99%
As a hub for smart chains, the ChainSwap protocol acts as a DeFi bridge for projects and users to seamlessly move assets between different blockchains like Ethereum (ERC-20), Binance Smart Chain (BSC), and Huobi’s ECO Chain. It also plans to build cross-chain solutions for Bitcoin, Polkadot, and Solana – the same as ChainSwap did with Polkastarter in March.
ChainSwap has suffered another exploit. The latest hack caused most of these tokens, including ASAP, to lose at least 95% of their value immediately following the incident as can be seen below. The projects that were involved in the exploit include Wilder Worlds (token symbol: WILD), Antimatter (MATTER), Option Room (ROOM), Umbrella Network (UMB), Blank, Nord Finance (NORD), Razor Network (RAZOR), Peri, Unido (UDO), Oro, Vortex (VTX), Corra (CORA), ROCKS, Dafi, and Unifarm (UFARM).
Some of the exploited ChainSwap tokens | Source: CoinGecko
Wilder World’s n3o posted an analysis of the incident, explaining that the exploit allowed the attackers to mint 20 million WILD tokens to its address.
— n3o (@real_n3o) July 11, 2021
The attack is estimated to be worth around $8 million. One of the hacker’s wallets, which shows them executing multiple swaps on the 1inch Exchange. The ChainSwap team noting that they are currently investigating the attack and will provide a compensation plan for all affected tokens. Then they followed up with a post confirming that it had frozen its Ethereum to Binance Smart Chain bridge.
As mentioned, this is not the first time ChainSwap has experienced an attack like this. ChainSwap is still trying to compensate users for a previous exploit on July 2, 2021. At the time, the project announced that its smart contract was compromised and the hackers drained around $800,000 worth of assets from users’ wallets.
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