DeFi Protocol ChainSwap Faces Critical Exploit
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July 12, 2021

ChainSwap is a cross-chain asset bridge & application hub for smart chains has suffered a critical vulnerability which allowed hackers to withdraw more than $4 million from several decentralized finance (DeFi) projects, iHodl Russia reports.

The developers of the protocol will release a new version of their ASAP token. The NFT marketplace Wilder World team found that bad actors took control of the WOLD contract on the Binance Smart Chain (BSC) network due to a critical vulnerability in the ChainSwap protocol. As a result, the hacker withdrew more than $534,000 from the Wilder Pancake Liquidity Pool at BSC and the ChainSwap bridge contract on the Ethereum blockchain.

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The developers noted they responded to the problem in time and prevented further spending of funds. According to them, the attack used a critical vulnerability in the ChainSwap smart contract, which allowed attackers to mint approximately 20 million WILD tokens directly to their address on the BSC network, and not in the main contract on the Ethereum blockchain. Wilder World stressed that their project was "one of dozens" of victims. The attack allegedly also affected Antimatter, Razor, Unifarm and other protocols.

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The hackers' address contains tokens worth more than $4.3 million. OptionRoom, a DeFiprotocol, also claimed to have suffered a hack. Unknown persons withdrew 2.3 million ROOMs on the Ethereum blockchain and 10 million ROOMs on the BSC network. As with Wilder World, the attackers exchanged tokens through decentralized exchanges like Uniswap.

The developers have withdrawn liquidity from the respective pools to prevent this from happening. OptionRoom announced they will compensate affected users in a 1:1 ratio. The network participants were asked to refrain from exchanging ASAP — the developers fixed the balances of addresses as before the hack and announced an airdrop of the new version of the token. In early July, hackers exploited a vulnerability in the ChainSwap code and withdrew $ 800,000 from the platform in various DeFi tokens.

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