Azoundria at 23:46, 2 May 2023

2023-05-02T23:46:43Z

Azoundria at 23:48, 18 February 2023

2023-02-18T23:48:51Z

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/forcedaohack.php}} Force DAOThe 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. This is a global/international case not involving a specific country. == About Force DAO..."

2023-01-26T05:35:39Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/forcedaohack.php}} thumb|Force DAOThe 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. This is a global/international case not involving a specific country. == About Force DAO..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/forcedaohack.php}}

[[File:Forcedao.jpg|thumb|Force DAO]]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.

This is a global/international case not involving a specific country.

== About Force DAO ==
"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."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Force DAO Hedge Fund Hack
!Date
!Event
!Description
|-
|April 4th, 2021 12:00:00 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
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.

== References ==
[https://atozmarkets.com/news/force-dao-hack-attack-after-launch/ DeFi Project Force DAO Suffers Hack Attack After Launch] (May 18)

[https://twitter.com/force_dao/status/1378764434026287104 @force_dao Twitter] (May 18)

[https://twitter.com/FrankResearcher/status/1378633815111954432 @FrankResearcher Twitter] (May 18)

[https://forcedao.medium.com/force-dao-airdrop-details-35ebe4579916 Force Dao Airdrop Details] (May 25)

[https://wivacoin.com/2021/04/force-dao-hacked-attackers/ DeFi hedge fund Force DAO hacked by multiple attackers - WIVACOIN] (May 26)

[https://coinmarketcap.com/currencies/force-dao/ Force DAO price today, FORCE live marketcap, chart, and info | CoinMarketCap] (May 26)

[https://twitter.com/force_dao/status/1378643450803929089 @force_dao Twitter] (May 26)

[https://twitter.com/force_dao/status/1378657570135625730 @force_dao Twitter] (May 26)

[https://blog.forcedao.com/xforce-exploit-post-mortem-7fa9dcba2ac3?gi=6b7e4cca3439 XForce Exploit Post-Mortem] (May 26)

[https://twitter.com/force_dao/status/1378764443555872771 @force_dao Twitter] (May 26)

[https://twitter.com/force_dao/status/1379451508585021446 @force_dao Twitter] (May 26)

[https://twitter.com/force_dao/status/1379662416456335361 @force_dao Twitter] (May 26)

[https://blog.forcedao.com/remediation-plan-and-v2-launch-f8dd8cee0a2 Remediate Plan and V2 Launch] (May 26)

[https://twitter.com/force_dao/status/1379819528306237440 @force_dao Twitter] (May 26)

[https://twitter.com/force_dao/status/1380551364825251842 @force_dao Twitter] (May 26)

[https://twitter.com/force_dao/status/1380657065853644805 @force_dao Twitter] (May 26)

[https://www.coindesk.com/defi-hedge-fund-force-dao-attacked-force-token-plunges DeFi Hedge Fund Force DAO Attacked; FORCE Token Plunges - CoinDesk] (May 26)

[https://www.nasdaq.com/articles/defi-hedge-fund-force-dao-attacked-force-token-plunges-2021-04-04 DeFi Hedge Fund Force DAO Attacked - Force Token Plunges] (May 26)

[https://www.cypherhunter.com/en/p/force-dao/ Force DAO - CypherHunter] (May 26)

[https://ciphertrace.com/cryptocurrency-crime-and-anti-money-laundering-report-may-2021/ Cryptocurrency Crime and Anti-Money Laundering Report, May 2021 - CipherTrace] (May 23)

[https://github.com/openblocksec/blocksec-incidents/blob/main/defi/2021.md blocksec-incidents/2021.md at main · openblocksec/blocksec-incidents · GitHub] (Aug 10)

[https://web.archive.org/web/20210405144248/https://blog.forcedao.com/xforce-exploit-post-mortem-7fa9dcba2ac3?gi=e2dbb13a93d7 xFORCE Exploit Post Mortem. Dear Force Community, I’m writing this… | by Alberto Cevallos | Apr, 2021 | ForceDAO] (Aug 10)

[https://www.certik.org/ CertiK Blockchain Security Leaderboard] (May 31)

[https://cryptosec.info/defi-hacks/ Comprehensive List of DeFi Hacks & Exploits - CryptoSec] (Jan 8)

[https://mobile.twitter.com/certikorg/status/1378726641757720581 https://mobile.twitter.com/certikorg/status/1378726641757720581] (Jan 10)

[https://mobile.twitter.com/certikorg/status/1378716138796879875 https://mobile.twitter.com/certikorg/status/1378716138796879875] (Jan 10)

Force DAO Hedge Fund Hack - Revision history

Azoundria at 23:46, 2 May 2023

Azoundria at 23:48, 18 February 2023