Join today to get full access to our basics to advance crypto courses, exclusive insights, research & analysis.

Chainswap suffers from an $4.4 million exploit

11 Jul 2021 : 12:11
Updated : 15 Jul 2021 : 23:21
2 min read
  • A vulnerability was found in its smart contract
  • The hack has impacted more than 10 tokens that were listed on the platform
  • It was not the first time that Chainswap has been exploited by a hacker

Decentralized cross-chain finance platform ChainSwap (ASAP) has been drained of about $4.4 million after a critical vulnerability in its smart contract was found and exploited by a hacker.

 Chainswap urges users not to purchase native tokens 

The platform has announced urging users not to buy their native tokens while investigating the incident.

The protocol claims that the funds from individual wallets are safe, but send, and withdrawal functions are yet to be resumed.           

On Twitter, there is a list of the more than ten tokens that the exploit has impacted. Such as Wilder Worlds ($WILD), Antimatter ($MATTER), Optionroom( $ROOM)  and (Umbrella Blank $UMB)

Other protocols have replied to the incident 

UniFarm (UFARM), Optionroom (ROOM), OroPocket (ORO), and other projects have decided to withdraw all liquidity from Uniswap and Pancakeswap temporarily.

Umbrella Network (UMB) has announced that it will buy back $230,000 worth of its native tokens, and it’s up to the community to decide how to spend them.  The project also says it will no longer rely on ChainSwap for token bridging.

The hack has also had a significant impact on tokens, their price action. For example, Wilder World (WILD), one of the affected tokens, collapsed 99.8 percent before recovering, according to CoinGecko data.

What is Chainswap?

ChainSwap is a cross-chain asset bridge & application hub. It allows projects to bridge between ETH, BSC, and HECO. Chainswap often listed unknown DeFi projects with a small market cap.

In April, the platform raised $3 million from Alameda Research, NGC Ventures, OKEx’s Block Dream Fund, and other investors. Investors were expecting that Chainswap would compete with Uniswap v3 and other DeFi protocols.

ChainSwap was still busy compensating for an earlier exploit on July 2, 2021, before the platform hit it a second time. Hackers compromised the protocol on the 2nd of July and drained around $800,000 worth of assets from users’ wallets.

About Author

Stan Colenbrander

More articles by this author

Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

Post a Comment