QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
$367 000 USD
APRIL 2021
GLOBAL
FORCE DAO
DESCRIPTION OF EVENTS
"Force is a community of strategists, developers and researchers identifying and productizing alpha across decentralized finance." "Force DAO is a collective of investment strategists working to identify and productize alpha across DeFi. We're starting with Yield Automation on Ethereum L1, and will soon be expanding with new products to other EVM compatible chains."
"Force is a protocol and DAO dedicated to producing superior returns by adhering to community-proposed strategies and rewarding the strategists with powerful incentives." "Force DAO is a DAO for strategists, building the people’s gateway to quant finance. Built on decentralized blockchains, Force DAO brings strategists together with community investors to find yield-bearing DeFi opportunities."
"According to the developers, attackers took advantage of a vulnerability in a smart contract. The team estimated the damage at 183 ETH ($367,000)."
"Our team is aware of the xFORCE contract exploit and has identified the nature of the issue. There are no further funds available on the xFORCE contract to be exploited. All other vaults are safe." "Please halt all trading on both Sushiswap and Uniswap."
"We take responsibility for this engineering oversight and have begun processes to ensure any such incidents are mitigated in the future. We also want to thank the White Hat hacker who helped deter further FORCE tokens from being drained. We have a bounty for you."
"The xFORCE vault is a xSUSHI contract fork. The implementation used assumes tokens revert the transaction on failure." "The token used by Force DAO is an Aragon Minime token that returns a false bool if “transferFrom” fails (instead of reverting)." "The exploiters were able to deposit FORCE tokens that would fail the transferFrom call and receive xFORCE tokens, as the xFORCE contract expects a revert from the token but instead receives false." "A user could then withdraw these newly minted xFORCE tokens for the remaining FORCE tokens in the vault, and liquidate them for ETH on exchanges." "This could’ve been prevented by using a standard Open Zeppelin ERC-20 or adding a safeTransferFrom wrapper in the xSUSHI contract."
"We’re currently engaged with 2 separate security firms to review and analyze our repos to ensure all contract systems perform as designed."
"[P]roject lead developer Alberto Sevallos has said the team will announce a plan to reimburse affected users in the coming days." "This incident will only make us stronger, as a team of builders and a community. And we look forward to sharing the new products we've been working on."
"At 2:26 PM +UTC, through our communication with a CEX, we were able to recover 45 ETH from the exploiter's address."
"The purpose of this post is to layout our team’s plan to: Remediate community members that suffered losses throughout the April 4th exploit, Launch the new FORCE token, aimed to go live by April 20th, 2021."
"Our team has recovered an additional 40 ETH from one of the exploiter's who came forward. We're thankful for his honesty." "An additional 13 ETH were sent from an exploiter's address to our dev multisig. This transaction was sent anonymously. Thank you."
The Force DAO is an investment strategy smart contract. This contract had an exploit, which allowed a hacker to take some funds.
The team analyzed the attack, and made a plan to relaunch with a new token that would reimburse the original token holders.
HOW COULD THIS HAVE BEEN PREVENTED?
Decentralized smart contracts are impossible to prove secure, and exploits can only be revealed over time.
Proper safe storage of funds should be an offline multi-signature wallet held by trained and background checked operators.
DeFi Project Force DAO Suffers Hack Attack After Launch (May 19)
@force_dao Twitter (May 19)
@FrankResearcher Twitter (May 19)
Force Dao Airdrop Details (May 26)
DeFi hedge fund Force DAO hacked by multiple attackers - WIVACOIN (May 27)
Force DAO price today, FORCE live marketcap, chart, and info | CoinMarketCap (May 27)
@force_dao Twitter (May 27)
@force_dao Twitter (May 27)
XForce Exploit Post-Mortem (May 27)
@force_dao Twitter (May 27)
@force_dao Twitter (May 27)
@force_dao Twitter (May 27)
Remediate Plan and V2 Launch (May 27)
@force_dao Twitter (May 27)
@force_dao Twitter (May 27)
@force_dao Twitter (May 27)
DeFi Hedge Fund Force DAO Attacked; FORCE Token Plunges - CoinDesk (May 27)
DeFi Hedge Fund Force DAO Attacked - Force Token Plunges (May 27)
Force DAO - CypherHunter (May 27)
Cryptocurrency Crime and Anti-Money Laundering Report, May 2021 - CipherTrace (May 24)
blocksec-incidents/2021.md at main · openblocksec/blocksec-incidents · GitHub (Aug 11)
xFORCE Exploit Post Mortem. Dear Force Community, I’m writing this… | by Alberto Cevallos | Apr, 2021 | ForceDAO (Aug 11)
CertiK Blockchain Security Leaderboard (Jun 1)
Comprehensive List of DeFi Hacks & Exploits - CryptoSec (Jan 8)
https://mobile.twitter.com/certikorg/status/1378726641757720581 (Jan 10)
https://mobile.twitter.com/certikorg/status/1378716138796879875 (Jan 10)
