Azoundria: Created page with "{{Imported Case Study With About|source=https://www.quadrigainitiative.com/casestudy/otseagrayhatgroupstakingidhack.php}} {{Unattributed Sources}} OTSea Logo/HomepageOTSea is a peer to peer trading platform, which claims to offer better rates than many of the existing liquidity pools. On September 12th, a gray hat hacking group announced they were attempting a token rescue, and then completed an exploit for $26k worth of tokens. The hacking gr..."

2024-10-22T17:47:46Z

Created page with "{{Imported Case Study With About|source=https://www.quadrigainitiative.com/casestudy/otseagrayhatgroupstakingidhack.php}} {{Unattributed Sources}} thumb|OTSea Logo/HomepageOTSea is a peer to peer trading platform, which claims to offer better rates than many of the existing liquidity pools. On September 12th, a gray hat hacking group announced they were attempting a token rescue, and then completed an exploit for $26k worth of tokens. The hacking gr..."

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{{Imported Case Study With About|source=https://www.quadrigainitiative.com/casestudy/otseagrayhatgroupstakingidhack.php}}
{{Unattributed Sources}}

[[File:Otseaio.jpg|thumb|OTSea Logo/Homepage]]OTSea is a peer to peer trading platform, which claims to offer better rates than many of the existing liquidity pools. On September 12th, a gray hat hacking group announced they were attempting a token rescue, and then completed an exploit for $26k worth of tokens. The hacking group announced their intentions to return the funds. There are no indications that funds were not returned. The token was relaunched with an even more deflationary model and this relaunch appears to have been successful.<ref name="slowmisthackedarchive-16111" /><ref name="etherscan-16215" /><ref name="cryptolab00twitter-16216" /><ref name="otseaerc20twitter-16217" /><ref name="certikalerttwitter-16218" /><ref name="etherscan-16219" /><ref name="etherscan-16220" /><ref name="etherscan-16221" /><ref name="etherscan-16222" /><ref name="etherscan-16223" /><ref name="etherscan-16224" /><ref name="certikalerttwitter-16225" /><ref name="stefencryptotwitter-16226" /><ref name="pandaly520twitter-16227" /><ref name="lunaraycotwitter-16228" /><ref name="0xnicklfranklintwitter-16229" /><ref name="nickfranklin-16230" /><ref name="pandalyteamtwitter-16231" /><ref name="otseaerc20twitter-16232" /><ref name="archive-16233" />

== About OTSea ==
OTSea is a peer to peer trading platform, which claims to offer better rates than many of the existing liquidity pools.

== The Reality ==
"We are GG, Grayhat Group. Heads up, we are attempting a token rescue. Some amount of tokens will be sold in the transaction. We do not intend to sell the rest of the tokens, and this is not a ransom. If we succeed we will send a detailed message. Brenden briefly spoke to a scout we sent to drop some hints about this."

== What Happened ==
"Peer-to-peer trading platform OTSea's staking contract on Ethereum was exploited by an EOA, resulting in the theft of approximately $26,000."
{| class="wikitable"
|+Key Event Timeline - OTSea Gray Hat Group Staking ID Hack
!Date
!Event
!Description
|-
|September 11th, 2024 3:58:35 AM MDT
|Exploit Test Contract Created
|The smart contract behind the exploit is created on the Ethereum blockchain.
|-
|September 12th, 2024 6:42:47 PM MDT
|Warning Message Sent
|A warning message is sent to alert the OTSea team that the Grey Hat Group are about to attempt a token rescue.
|-
|September 12th, 2024 6:45:11 PM MDT
|First Exploit Transaction
|The first exploit transaction happens on the blockchain.
|-
|September 12th, 2024 6:55:47 PM MDT
|Second Exploit Transaction
|Another transaction happens which is potentially a second exploit.
|-
|September 12th, 2024 7:31:59 PM MDT
|Taking Too Long
|A message is sent saying it's taking them a little too long to realize somethign is wrong.
|-
|September 12th, 2024 8:15:00 PM MDT
|CertiK Alert Tweet
|CertiK posts an alert with details of the repeated exploit which happened, and the gray hat negotiations.
|-
|September 12th, 2024 8:26:00 PM MDT
|CertiK Provides Message
|CertiK provides the message as a negotiation with the team.
|-
|September 15th, 2024 1:20:00 AM MDT
|OTSea Announcement
|The OTSea project announces a new "ultra-deflationary" model for their tokenomics, which they are updating "after a vulnerability in the staking contract was discovered, and we are taking the opportunity to move to a simpler burn model". They do not mention that anything was exploited.
|-
|September 15th, 2024 10:16:00 AM MDT
|Off To Great Start
|OTSea tweets that their deflationary model is off to a great start.
|}

== Technical Details ==
This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

== Total Amount Lost ==
The total amount lost has been estimated at $26,000 USD.

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 ==
"@otseaERC20 staking contract on Ethereum has been exploited for ~$26K by eoa: 0x000000003704BC4ffb86000046721f44Ef3DBABe who repeatedly withdraw the same staking id."

== 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 ==
The total amount recovered has been estimated at $26,000 USD.

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?
== Individual Prevention Policies ==
{{Prevention:Individuals:Placeholder}}

{{Prevention:Individuals:End}}

== Platform Prevention Policies ==
{{Prevention:Platforms:Placeholder}}

{{Prevention:Platforms:End}}

== Regulatory Prevention Policies ==
{{Prevention:Regulators:Placeholder}}

{{Prevention:Regulators:End}}

== References ==
<references><ref name="slowmisthackedarchive-16111">[https://web.archive.org/web/20240916181825/https://hacked.slowmist.io/ https://web.archive.org/web/20240916181825/https://hacked.slowmist.io/] (Accessed Oct 15, 2024)</ref>

<ref name="etherscan-16215">[https://etherscan.io/address/0x000000003704bc4ffb86000046721f44ef3dbabe Address 0x000000003704bc4ffb86000046721f44ef3dbabe | Etherscan] (Accessed Oct 22, 2024)</ref>

<ref name="cryptolab00twitter-16216">[https://twitter.com/cryptolab_00/status/1846988432481960149 @cryptolab_00 Twitter] (Accessed Oct 22, 2024)</ref>

<ref name="otseaerc20twitter-16217">[https://twitter.com/otseaERC20/status/1835217064379777043 @otseaERC20 Twitter] (Accessed Oct 22, 2024)</ref>

<ref name="certikalerttwitter-16218">[https://twitter.com/CertiKAlert/status/1834415650925936942 @CertiKAlert Twitter] (Accessed Oct 22, 2024)</ref>

<ref name="etherscan-16219">[https://etherscan.io/txs?a=0x000000003704BC4ffb86000046721f44Ef3DBABe&ps=100 Ethereum Transactions Information | Etherscan] (Accessed Oct 22, 2024)</ref>

<ref name="etherscan-16220">[https://etherscan.io/tx/0x9832a4f3d663db4f082b701d73caf8c12d8dd9db684b7a88e19d7019ec393088 Ethereum Transaction Hash (Txhash) Details | Etherscan] (Accessed Oct 22, 2024)</ref>

<ref name="etherscan-16221">[https://etherscan.io/tx/0x599c982a58a00525e16bc863729d83f247a02b04f4e6863e9f5cc9f24519261a Ethereum Transaction Hash (Txhash) Details | Etherscan] (Accessed Oct 22, 2024)</ref>

<ref name="etherscan-16222">[https://etherscan.io/tx/0x10ab93e2727a8aa58a79cb0969423a9c5be6565cd46686ea241563b158b595e4 Ethereum Transaction Hash (Txhash) Details | Etherscan] (Accessed Oct 22, 2024)</ref>

<ref name="etherscan-16223">[https://etherscan.io/tx/0x90b4fcf583444d44efb8625e6f253cfcb786d2f4eda7198bdab67a54108cd5f4 Ethereum Transaction Hash (Txhash) Details | Etherscan] (Accessed Oct 22, 2024)</ref>

<ref name="etherscan-16224">[https://etherscan.io/tx/0x1808fea416f6fd159397bbbca13552e0a9e9dbb2af8abdd69c41c7be03e138a9 Ethereum Transaction Hash (Txhash) Details | Etherscan] (Accessed Oct 22, 2024)</ref>

<ref name="certikalerttwitter-16225">[https://twitter.com/CertiKAlert/status/1834418223682650329 @CertiKAlert Twitter] (Accessed Oct 22, 2024)</ref>

<ref name="stefencryptotwitter-16226">[https://twitter.com/StefenCrypto/status/1845199855573971455 @StefenCrypto Twitter] (Accessed Oct 22, 2024)</ref>

<ref name="pandaly520twitter-16227">[https://twitter.com/pandaly520/status/1834476017836327304 @pandaly520 Twitter] (Accessed Oct 22, 2024)</ref>

<ref name="lunaraycotwitter-16228">[https://twitter.com/lunaray_co/status/1834420637684973928 @lunaray_co Twitter] (Accessed Oct 22, 2024)</ref>

<ref name="0xnicklfranklintwitter-16229">[https://twitter.com/0xNickLFranklin/status/1834436390731612645 @0xNickLFranklin Twitter] (Accessed Oct 22, 2024)</ref>

<ref name="nickfranklin-16230">[https://nickfranklin.site/2024/09/13/otsea-staking-hacked/ OTSea Staking hacked – Defi hack analysis] (Accessed Oct 22, 2024)</ref>

<ref name="pandalyteamtwitter-16231">[https://twitter.com/pandaly_team/status/1834475544315834493 @pandaly_team Twitter] (Accessed Oct 22, 2024)</ref>

<ref name="otseaerc20twitter-16232">[https://twitter.com/otseaERC20/status/1835352079021256787 @otseaERC20 Twitter] (Accessed Oct 22, 2024)</ref>

<ref name="archive-16233">[https://archive.ph/xfguI https://archive.ph/xfguI] (Accessed Oct 22, 2024)</ref></references>

OTSea Gray Hat Group Staking ID Hack - Revision history