Attacker mints more than 1 quintillion tokens in DeFi Cover Protocol hack
Another day another DeFi project hacked. Cover Protocol, a DeFi insurance project was hacked on Monday in an infinite printing scheme attack, prompting the price of the Cover token to take a huge nosedive.
The attacker cashed out more than $4 million consisting of 1,400 ETH, 1 million DAI, and 90 WBTC. After minting 40 quintillion Cover tokens, the exploiter sold tokens worth $5 million.
Cover protocol claim that it is still investigating the hack. No further details were provided except that people should not buy COVER tokens and remove “liquidity from the COVER/ETH pool on sushiswap.”
The team is still investigating the current incident. The exploit is no longer possible.
The exploit is no longer possible. Please do NOT buy $COVER tokens, and remove your liquidity from the COVER/ETH pool on sushiswap.CLAIM/NOCLAIM balancer pools are unaffected
— Cover Protocol (@CoverProtocol) December 28, 2020
The protocol is also working with individuals and teams within the Yearn Ecosystem to get to the bottom of the hack.
While the details of the hack are still sketchy, Band Protocol CTO Sorawit Suriyakarn studied the exploit and came to the conclusion that the attack involves using storage and memory incorrectly.
“The attack does 4 things: 1. Deposit LP tokens to Blacksmith contract 2. Withdraw *almost* all LP tokens to inflate accRewardsPerToken 3. Deposit LP tokens again (this is the interesting bit) 4. Claim COVER rewards and trick the contract to mint quintillion of $COVER tokens,” explained Suriyakarn.
Attacker returns stolen funds
In an unexpected turn of events, the attacker returned the stoken funds. The hacker, only identified as Grap Finance, returned 4,350 ETH worth over $3.2 million to Cover Protocol.After claiming responsibility for the hack, the attacker sent a message telling Cover Protocol to “take care of your own shit.”
The attacker further added that there was no gain.
Next time, take care of your own shit.@CoverProtocol @chefcoverage https://t.co/ks94ucdoRQ
1. No gains. 2. The Obtained Funds from LP has been returned to COVER.— Grap.finance (@GrapFinance) December 28, 2020
Cryptocurrency exchange Binance suspended Cover trading and deposits to protect its users. The news of the hack saw the Cover token plunge more than 90%.
The Cover token is currently trading at $23.76, down from $879 in the last 24 hours.
[caption id="attachment_21407" align="aligncenter" width="1286"]
The Cover token is down more than 96% in the last 24 hours following an exploit that saw the hacker mint a quintillion Cover tokens | Credit / TradingView[/caption]
A Cover investor claims to have lost $20,000 due to the hack and requested compensation.
Cover Protocol is exploring providing new Cover tokens and is planning to use the 4350 ETH returned by the hacker to compensate LP token holders who fell victim to the security breach.
Hello everyone, we are exploring providing a NEW $COVER token through a snapshot before the minting exploit was abused. The 4350 ETH that has been returned by the attacker will also be handled through a snapshot to the LP token holders.We are still investigating. Do NOT buy COVER
— Cover Protocol (@CoverProtocol) December 28, 2020
100% Success Money Back Guarantee
If our approach doesn’t outperform the overall crypto market during your subscription, we’ll give you a full refund of your membership. No questions asked. For quarterly and monthly subscribers this is applicable once your subscription runs for 6 consecutive months.
Take your next step towards crypto success
$799/year
Get everything you need to actively manage your portfolio and stay ahead. Ideal for investors seeking regular guidance and access to tools that help make informed decisions.
For your security, all orders are processed on a secured server.
What’s included in Pro:
Success Guarantee, if we don’t outperform the market, you get 100% back, no questions asked
24/7 access to experts with 50+ years’ experience
All of our top token picks for 2025
Our latest memecoins pick with 50X potential
On hand technical analysis on any token of your choice
Weekly livestreams & ask us anything with the team
Daily insights on Macro, Mechanics, and On-chain
Curated list of top upcoming airdrops (free money)
Our track record speaks for itself
With over 2.4M tokens and widespread misinformation in crypto, we cut
through the noise and consistently find winning assets.
Frequently Asked Questions
Can I trust Cryptonary's calls?
Yes. We've consistently identified winners across multiple cycles. Bitcoin under $1,000, Ethereum under $70, Solana under $10, WIF from $0.003 to $5, PopCat from $0.004 to $2, SPX blasting past $1.70, and our latest pick has already 200X'd since June 2025. Everything is timestamped and public record.
Do I need to be an experienced trader or investor to benefit?
No. When we founded Cryptonary in 2017 the market was new to everyone. We intentionally created content that was easy to understand and actionable. That foundational principle is the crux of Cryptonary. Taking complex ideas and opportunities and presenting them in a way a 10 year old could understand.
What makes Cryptonary different from free crypto content on YouTube or Twitter?
Signal vs noise. We filter out 99.9% of garbage projects, provide data backed analysis, and have a proven track record of finding winners. Not to mention since Cryptonary's inception in 2017 we have never taken investment, sponsorship or partnership. Compare this to pretty much everyone else, no track record, and a long list of partnerships that cloud judgements.
Why is there no trial or refund policy?
We share highly sensitive, time-critical research. Once it's out, it can't be "returned." That's why membership is annual only. Crypto success takes time and commitment. If someone is not willing to invest 12 months into their future, there is no place for them at Cryptonary.
Do I get direct access to the Cryptonary team?
Yes. You will have 24/7 to the team that bought you BTC at $1,000, ETH at $70, and SOL at $10. Through our community chats, live Q&As, and member only channels, you can ask questions and interact directly with the team. Our team has over 50 years of combined experience which you can tap into every single day.
How often is content updated?
Daily. We provide real-time updates, weekly reports, emergency alerts, and live Q&As when the markets move fast. In crypto, the market moves fast, in Cryptonary, we move faster.
How does the success guarantee work?
If our approach to the market doesn’t beat the overall crypto market during your subscription, we’ll give you a full refund of your membership fee. No questions asked. For quarterly and monthly subscribers this is applicable once your subscription runs for 6 consecutive months.
Recommended from Cryptonary
