Chainswap Protocol Attacked: Results In Loss of over $4 Million so far

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The Chainswap Protocol became the latest Binance Smart Chain project to be hacked over the weekend, with the attacker being able to mint tokens from a range of projects directly to their address.

The Chainswap Protocol became the latest Binance Smart Chain project hacked over the weekend, with the attacker being able to mint tokens from a range of projects directly to their address before moving them to the decentralised BCS exchange PancakeSwap. The Chainswap Protocol attack netted the hacker a cool $4.4 Million worth of Ether to date.

Multiple Projects affected in the Chainswap Protocol attack

Some of the projects affected in the Chainswap Protocol attack included $WILD, Antimatter, Nord, Razor, Peri, Optionroom, Umbrellabank, Unido, Oro, Vortex, Blank, and Unifarm. To date, Antimatter and Optionroom have announced they will compensate affected investors on a 1:1 basis.

An analysis of the attack by WilderWorld, as posted by user @real_n3o on Twitter points to a vulnerability which enabled the attacker to mint 20 Million $WILD tokens directly to their wallet from a factory root address. The user notes that the first minting transaction of half a million $WILD was confirmed at 07:17pm +UTC on July 10th, and was followed by a further 40 subsequent mining transactions.

The attacker then sold the entire 20 Million tokens in a single transaction on PancakeSwap for WBNB (Wrapped Binance Coin), removing almost all of the BNB liquidity from the pool.

This is the latest in a series of high profile attacks recently, following on from a recent attack which saw Polygon DeFi project Safedollar crash to zero just 2 weeks ago. Binance Smart Chain projects BurgerSwap (BURGER) and JulSwap (JULD) have also seen a number of flash loan attacks recently too, with over $7M being lost to hackers. DeFi exchange Pancake Bunny was also hit in May 2021, which resulted in the BUNNY token crashing from $146 to a low of just above $6. The BSC team acknowledged back at the time that this was a “Challenging time for the BSC communty (Sic)”

Binance Smart Chain team tweet, May 30 2021

However, the latest attack does not seem to have massively negatively affected the price of the native Binance token, up 4.5% at the time of writing and hovering around $332 USD.

Dylan Leighton

Dylan Leighton

Dylan Leighton is an composer, music producer, sound designer and mix engineer from the United Kingdom. Making music for over 40 years, he creates music for corporate clients, film and video, and his own personal enjoyment. Writing under the artist name Kalliste, he has composed in just about every genre, from hip-hop to funk to classical.

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