QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
$41 000 USD
SEPTEMBER 2025
GLOBAL
WET TOKEN
DESCRIPTION OF EVENTS
The WET token was deployed on the Binance Smart Chain on September 16th, 2025.
Unfortunately, the function was vulnerable to a flash loan attack, given that it directly polled for the average market price in a redemption function.
According to the description from TenArmor, "[i]t appears that the 0x6a154c56() function of the contract 0x0a40 swaps WETToken and WUSD, relying the spot price of the WETToken/USDT pair."
A post by ACaiGarden (translated from Chinese) explains further:
"In general, the rootcause of this attack is the 0x0A40 contract that provides the function of exchanging [WET, WUSD] for each other, and the proportion of the exchange is determined by obtaining the current price of [WET, BUSD]. The attacker manipulates the price of [WET, BUSD] with the large amount of money obtained through flash loans, thereby swapping WET for WUSD through the 0x0A40 contract when the WET price is high, and then swapping WUSD for WET when the WET price is low, thereby swapping out the excess WET. Convert to BUSD After the flash loan is returned, convert it to BNB for fund transfer."
"The location where the attack occurred is in the callback function of Flash Loan. After executing the Flash Loan, the attack contract will exchange the profitable BUSD for BNB for transfer."
"Entering the callback function of Flash Loan, first a series of authorizations are performed, and then every 4 call operations are performed as a group, and repeated operations are performed multiple times."
"(1) Swap: with 5000000 BUSD → 19432567 WET
(2) 0x6a154c56: trade 322 WET for 2234 WUSD
(3) Swap: with 19432234 WET → 4999040 BUSD
(4) 0xa6ff54ad: Exchange 2234 WUSD for 223800 WET"
"As can be seen from this set of operations above, 1 and 3 are equivalent operations and 2 and 4 are not. The 2234 WUSD exchanged for 322 WET in operation 2 can actually be exchanged for 223800 WET in operation 4, which creates profit margins."
"Combining trace, it can be seen that the corresponding number of AmountOut is obtained by the _uniswapV2Router.getAmountsOut() function in the 0x235f function. Combined with information on the manipulation of the currency prices of WET and BUSD during the attacks mentioned in the Trace analysis segment , it can be inferred that the token corresponding to the amount of AmountOut is BUSD.
That is, when the attack contract calls the 0x6a154c56 function for redemption, WET is exchanged for BUSD according to the already manipulated [WET, BUSD] price."
The losses were reported by TenArmor as "an approximately loss of $41.1K".
The incident was reported by TenArmor.
There does not appear to have been any further outcome.
The protocol does not appear to have a public presence.
It is unclear if the protocol is aware and responding to the incident.
The WET token on Binance Smart Chain, was exploited shortly after launch through a flash loan attack due to a vulnerability in its redemption function, which relied on spot market prices. The attacker manipulated the WET/BUSD price using borrowed funds to exploit the 0x0A40 contract, swapping tokens at artificially inflated and deflated prices to generate profit. Specifically, they used a sequence of token swaps and redemptions within the flash loan callback to gain a significant arbitrage advantage. The total loss from the exploit was approximately $41,100, as reported by TenArmor. There has been no public response from the protocol, and its current status remains unclear.
TenArmor - "Our system has detected a suspicious price manipulation attack involving #WETToken on #BSC, resulting in an approximately loss of $41.1K." - Twitter/X (Sep 19)
Attack Transaction - BSCScan (Sep 19)
Exploiter Address - BSCScan (Sep 19)
Exploiter Address Funded - BSCScan (Sep 19)
Exploit Transaction - BlockSec (Sep 19)
20250917 - WETToken attack: room for arbitrage arising from price manipulation - ACaiGarden CNBlogs (Sep 19)
Defimon Alerts - Telemetrio (Sep 19)
WET Token Smart Contract - BSCScan (Sep 19)
WET Token Smart Contract Creation - BSCScan (Sep 19)
WET Token - The Bit Times (Sep 19)
