• Projects scramble to remove liquidity once ChainSwap is hacked

  • ChainSwap, a cross-chain asset bridge, was purportedly hacked, with the hackers making off with roughly $8 million. Other projects that had worked with ChainSwap to connect Ethereum and the Binance Smart Chain have also been affected. Details of the Attack On Saturday, July 10th, at 4 p.m. EST, hackers attacked and abused the ChainSwap smart contracts, stealing tokens from more than 20 ChainSwap projects.

    Dafi, Option Room, Razor, Oro, Antimatter, Umbrella Room, and several other projects were impacted by the hack. By depleting the liquidity pools of many projects, the hackers were able to generate a profit of almost $2.3 million from the attack. ChainSwap’s Reaction To The Hacking ChainSwap has issued a series of statements on its Twitter account to reassure users and projects on their network. ChainSwap’s team has gone into action to minimise the damage caused by the hacking. Users have also been told by ChainSwap that just the smart contracts have been harmed and that their wallet funds are safe. In an attempt to filter out the hacker’s addresses, the team has frozen the BSC mapping token addresses. ChainSwap has also temporarily halted liquidity while it investigates the attack, advising customers not to purchase the $ASAP token until the investigation is complete.

    This recent hack follows previous attack on ChainSwap on July 2nd, which resulted in a $800,000 loss for the company. Chainflip is also working on a compensation strategy for the tokens that have been affected. The team has also taken pre-hack snapshots of token holders and liquidity providers, and will airdrop 1:1 new $ASAP tokens while re-adding liquidity. This will cover holders of $ASAP tokens on exchanges. Affected Projects Respond As of right now, multiple ChainSwap bridge projects that have been hacked have issued statements on Twitter. Several of the projects have also stated that they will be issuing new tokens. MyDeFiPet took to Twitter to announce that DPET tokens had been taken from the team’s Uniswap liquidity pool. It also noted that holders of BEP20 and KRC20 DPET tokens are unaffected by the attack. Users were assured that their monies were safe, and that the initiative had taken a snapshot of all Ethereum activity for refund.

    OptionRoom has opted to suspend all liquidity for the time being, according to a tweet from the company. The hacker also took 2,314,640 $ROOM tokens worth $550,000 from cross-chain contracts, according to the report. The project later announced on Twitter that the hacker was able to take 2.3 million $ROOM tokens on Ethereum and 10 million $ROOM tokens on the Binance Smart Chain. The OptionRoom team was also able to withhold liquidity from Uniswap and Pancakeswap, shielding token holders and liquidity providers from the hacker if he sold into liquidity pools, according to the report. OptionRoom was able to recoup $342,117 from the deployer by selling tokens to the Uniswap pool. Following an assessment of the liquidity providers’ portion, the team intends to disperse the recovered funds among them. The company is also looking into the Ethereum and BSC logs to see what each $ROOM holder had when the hack happened, so they can airdrop the fresh tokens to them.

    UniFarm UniFarm responded to the developments on Twitter, indicating that they were in continual contact with the ChainSwap team. UniFarm has taken all Uniswap and PancakeSwap liquidity offline and has asked their community to do the same until the problem is fixed. KwikSwap Protocol announced that they had disabled their markets because to the hack affecting their BEP-20 tokens, and that they were examining the problem with ChainSwap.

    KwikSwap intended to reopen its token market, but discovered that all of the compromised KWIK tokens had been sold on Uniswap. Nord Finance indicated that the ChainSwap hack had harmed the project and that they were working closely with the ChainSwap team to analyze the situation and plan the next line of action, which they will share with the community as soon as possible. After it was found that $WILD tokens had also been hijacked, Wilder World advised users to postpone buying and selling across exchanges until further notice.

    Interesting Details About The Hacker Many Twitter posts have provided insight on the hacker’s background. The hacker’s address is 0xEda5066780dE29D00dfb54581A707ef6F52D8113, according to the posts. According to data from Etherscan and BSCscan, there are still tokens worth thousands of dollars that have not been sold. This is because project developers took prompt action and locked the assets, making it nearly hard for the hacker to sell them. The ChainSwap bridge has been temporarily closed for the time being. This content is provided solely for informational reasons. It is not presented as legal, tax, investment, financial, or other advice, and it is not intended to be used as such.

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