DESCRIPTION OF EVENTS
"Corra.finance is a plug-and-play platform that enables the monetization of digital content using NFT technology." "Corra.Finance was announced on March 23, 2021." "We aim to gamify existing DeFi products by enhancing their yield through the use of exclusive NFT products sold on Corra.finance. The goal is to introduce new revenue streams, enhance user experience, and increase the interaction between users and existing DeFi products."
"Corra will enable the monetization of digital content through the creation of NFT. Instead of gaining likes from your photos on Instagram, you can sell them to your fans. Anyone can create NFT products, auction them, and monetize their ideas, words, digital content, products, and much more. Corra strives to push NFT use cases beyond just gaming and digital arts. The platform will introduce four new categories to curate NFT products: DeFi, digital content, social media, and non-profit. Users can create and list products for free without paying gas fees. Only when the users auction out a successful sale will the platform charge a fee, guaranteeing a profit to all NFT creators on Corra."
"ChainSwap is a bridge protocol that links the Ethereum and Binance Smart Chain (BSC) blockchains." "It supports Binance Smart Chain, Ethereum, Polygon, and Huobi Eco Chain." "The ChainSwap hacker identified and exploited a vulnerability in the ChainSwap smart contract. This vulnerability enabled them to steal and mint new tokens for various protocols that were using the bridge to trade across Ethereum and BSC."
Investigation by ChainSwap revealed "a bug in the token cross-chain quota code. The on-chain swap bridge quota is automatically increased by the signature node, which is intended to be more decentralized without manual control. However, due to a logical flaw in code, this led to an exploit by allowing invalid addresses which weren’t whitelisted to automatically increase the amount."
"Chainswap was attacked today. It is recommended to not add any liquidity to any pools until further notice."
"The attacker managed to take control of the projects’ BSC contracts by exploiting ChainSwap. The attacker minted tokens directly to their address, then sold them on BSC’s most popular decentralized exchange, PancakeSwap." "[T]he attacker used the PancakeSwap exchange to convert the stolen tokens to WBNB, DAI, and other tokens."
"Chainswap said it had already repurchased a small amount of the affected tokens from the market and returned the contract wallet. The rest will be paid out in full by the Chainswap vault." "ChainSwap team has now prepared and executed a compensation plan in consensus with the affected projects." "In order to bring everybody a more rigorous, efficient bridge, the next development model of ChainSwap will be adjusted to ensure maximum safety."
"According to their post-mortem and compensation plan, the ChainSwap team, with assistance from police and OKEx, managed to find the attacker’s email address and entered negotiations with them. These negotiations resulted in the return of Corra and RAI tokens."
"ChainSwap smart contract has been restored and the attacker has returned tokens to the ChainSwap team. Corra liquidity will restore within 1-2 weeks once the full restoration has been completed by ChainSwap."
"For now, Chainswap has temporarily closed its cross-chain bridge." "ChainSwap worked with the police and OKEx to identify the attackers, and managed to negotiate the recovery of Corra and Rai tokens. An initial email with the attackers suggested the attackers return $1 million."
“Sorry for the trouble, you sound genuinely like great people but money is money,” the attackers of the earlier exploit told ChainSwap.
"Chainswap compensated Corra for the breach. Bridge have been halted."
"ChainSwap is excited to announce that we have successfully integrated with Anyswap and Chainswap bridge is now live. We thank our community for its patience during the last few weeks."
Corra Finance is a service which enables the sale and purchase of NFTs. Their token used ChainSwap to exist on multiple blockchains, which required some funds to be stored in the smart contract hot wallet.
The ChainSwap bridge was hacked, and the attacker was able to obtain the tokens, which were sold. ChainSwap was able to negotiate the return of the tokens from the hacker.
HOW COULD THIS HAVE BEEN PREVENTED?
Theoretically, decentralized finance will eventually result in hackers having exploited every vulnerability that exists. However, it's impossible to know when that will occur and if a contract is truly secure, as opposed to there still being an exploit that just hasn't been noticed yet. For any complex smart contract, it's impossible to prove security and plenty of fully audited contracts have been exploited.
In this situation, there was luckily not much taken, and it looks like it will be ultimately reimbursed. Platforms should, generally, be prepared for the full loss of all assets stored in hot wallets (including smart contracts). Assets that do not need to be accessed quickly should be stored securely in a simple offline multi-signature wallet.
Chainswap Black Sunday, over 20 DEFI projects were stolen - 律动BlockBeats (Aug 24)
ChainSwap Exploit 11 July 2021 Post-Mortem | by ChainSwap | Medium (Aug 24)
MappableToken | 0x06c24002f43e3AF904EeEc581734EA3A7DbF355E (Aug 24)
ChainSwap Exploit Leads to Multi-Million Loss For DeFi Tokens - Decrypt (Aug 24)
@chain_swap Twitter (Aug 24)
Explained: The ChainSwap Hack (July 2021) - Halborn (Aug 24)
$8 Million Lost in Major ChainSwap Exploit | Crypto Briefing (Aug 24)
ChainSwap re-launch, we are live. ChainSwap is excited to announce that… | by ChainSwap | Medium (Aug 29)
Rekt - ChainSwap - REKT (Aug 29)
blocksec-incidents/2021.md at main · openblocksec/blocksec-incidents · GitHub (Aug 11)
Corra (Sep 17)
Corra.Finance 1.0: Product Discovery | by Corra.Finance | Medium (Sep 17)
Corra.Finance price today, CORA to USD live, marketcap and chart | CoinMarketCap (Sep 20)
@CorraFinance Twitter (Sep 20)
@CorraFinance Twitter (Sep 20)
Understanding the Token and Business Model of CORA | by Corra.Finance | Medium (Sep 20)
Introducing Corra. Finance - YouTube (Sep 20)
@corrafinance Twitter (Sep 20)
Second ChainSwap Exploit Incurs $8M in Losses (Sep 20)
Chainswap Post Mortem Deep Dive Into The Exploit (May 7)
Random Numbers Don’t Lie: A Closer Technical Look into Recent DeFi Hacks (May 7)