ChainSwap has temporarily blocked the liquidity of its $ ASAP tokens and is preparing a compensation plan for stolen tokens via an airdrop.
A vulnerability in the ChainSwap smart contract protocol allowed cybercriminals to steal $ 8 million worth of cryptocurrency.
The incident was the second this month – the first occurred on July 2, and attackers stole $ 800,000, and the second attack took place last weekend. The hackers exploited a vulnerability in the smart contract code that allowed them to gain access to the ChainSwap protocol backend and steal assets from the liquidity pools of partner cryptocurrency exchanges.
According to a ChainSwap spokesman, the issue affected smart contracts, but not wallets interacting with ChainSwap, so funds in the personal wallets of users of these cryptocurrency exchanges were not affected.
ChainSwap’s management quickly responded to the incident by temporarily blocking the liquidity of their $ ASAP tokens. The company also asked users not to buy the tokens affected by the attack, traded between exchanges, and froze the conversion of BSC tokens in order to track the wallets of the hackers.
While the provision of liquidity remains temporarily blocked, both ChainSwap and other affected projects are implementing compensation plans that involve replacing stolen tokens through an airdrop.
The attack affected more than 20 projects that recorded thefts from their liquidity pools. The most affected were Option Room and Umbrella Room, from which $ 500 thousand was stolen.Nord, DaFi, Razor, Antimatter, Ora tokens were also affected.
ChainSwap is a cross-chain (bridge between blockchains) that acts as an intermediary between the many Binance Smart Chain (BSC), Ethereum (ETH) and Polygon (MATIC) blockchains. In the future, ChainSwap will integrate more blockchains and provide complete cross-chain solutions between cryptocurrencies and tokens such as BTC, DOT and SOL.
Airdrop is a one-time distribution of tokens to members of the cryptocurrency community who perform certain actions or meet certain criteria. An automatic airdrop occurs when holders of certain cryptocurrencies receive new coins from hard forks.
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