Weekly Blockchain Security Report by Fairyproof- February 28 to March 6
During the week from February 28 to March 6, 2022, security events that happened in the crypto industry can be categorized into two…
During the week from February 28 to March 6, 2022, security events that happened in the crypto industry can be categorized into two: security hacks and improper operations.
Here is a list of the security hacks:
On March 3, 2022, TreasureDAO, a popular NFT application, deployed on Arbitrum, a popular Ethereum Lay 2 solution was attacked due to a vulnerability in its code. During this incident around 100 NFTs were exploited. However, the attacker later returned the NFTs and transferred them to a multi-sig wallet. For more details, please refer to https://medium.com/coinmonks/fairyproofs-analysis-of-the-security-breach-on-treasuredao-919bf8257c97
On March 5, 2022, Bacon Protocol, a lending protocol deployed on Ethereum suffered from a flashloan attack from a hacker whose address was 0x7c42f2a7d9ad01294ecef9be1e38272c84607593 due to a vulnerability that would introduce a re-entrancy risk. The total loss in this incident was valued at $1 million.
On March 6, 2022, Solana, a popular L1 alternative blockchain suffered from multiple phishing attacks. Some users clicked on a link to www.officialsolanarares.net and proceeded with its NFT mint. However, after a user followed the default process, he/she would actually interact with a malicious contract deployed at 3VtjHnDuDD1QreJiYNziDsdkeALMT6b2F9j3AXdL4q8v. If a user approves a transaction prompted by the site, the SOLs his/her wallet held would be taken away.
Here is a list of the improper operations:
On March 3, 2022, PeacefulWorld, a project deployed on Ethereum was attacked by an MEV robot. The project token’s prices generated by its liquidities deployed on Uniswap V2 and Uniswap V3 had a difference. This price difference was exploited by an MEV robot that used flashloans to arbitrage between these two liquidities. Eventually, 69 ETHs were exploited in this incident. The MEV robot’s address was 0x000076a33ef6a2027f01f73f7dbb122a8f31f61d. For more details, please refer to https://twitter.com/FairyproofT/status/1499348314923413506
Closing thoughts
For the incidents that happened to TreasureDAO and Bacon Protocol, the issues shouldn’t be difficult to uncover if their code had undergone a thorough audit.
For the incident that happened to PeacefulWorld, the issue was not a code issue but one pertaining to the team’s operation. However, if the team had adopted a carefully designed comprehensive security framework this issue should have been avoided.
So, for project developers, conducting an audit is a must-have before deploying. In addition, adopting a comprehensive security framework to guide a project’s daily operation and maintenance is necessary as well.
For the incident that happened to the Solana applications, it was actually a commonly seen risk. And as long as you are aware of suspicious websites and don‘t open them, you should have avoided incidents of this kind.