Vether V3 Exploited - Revision history

Azoundria at 16:10, 2 May 2023

2023-05-02T16:10:50Z

← Older revision		Revision as of 10:10, 2 May 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/vetherv3exploited.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/vetherv3exploited.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	[[File:Vether.jpg\|thumb\|Vether]]Vether was a crypto-asset which has a heavily limited supply.		[[File:Vether.jpg\|thumb\|Vether]]Vether was a crypto-asset which has a heavily limited supply.
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	The lost assets were reimbursed in V4.		The lost assets were reimbursed in V4.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.<ref name="ciphertrace-1152" /><ref name="slowmisthacked-678" /><ref name="crypto-1642" /><ref name="vetherasset-1643" /><ref name="coingecko-1644" /><ref name="randomizedxyzmedium-1645" /><ref name="vetherassetmedium-1646" /><ref name="strictlyscarcetwitter-2544" />
	<ref name="ciphertrace-1152" /><ref name="slowmisthacked-678" /><ref name="crypto-1642" /><ref name="vetherasset-1643" /><ref name="coingecko-1644" /><ref name="randomizedxyzmedium-1645" /><ref name="vetherassetmedium-1646" /><ref name="strictlyscarcetwitter-2544" />

	== About Vether ==		== About Vether ==
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	!Description		!Description
	\|-		\|-
	\|June 30th, 2020 ~~12:00:00 AM~~		\|June 30th, 2020
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
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	\|		\|
	\|}		\|}

			== 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 ==		== Total Amount Lost ==
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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			No assets were lost in this case, since the protocol relaunched.
			== 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 ~~Policies ==~~		{{Prevention:Regulators:End}}
	~~No assets were lost in this case, since the protocol relaunched.~~

	== References ==		== References ==
	<references><ref name="ciphertrace-1152">[https://ciphertrace.com/wp-content/uploads/2021/01/CipherTrace-Cryptocurrency-Crime-and-Anti-Money-Laundering-Report-012821.pdf CipherTrace Cryptocurrency Crime and Anti-Money Laundering Report 2020] (Jun 19, 2021)</ref>		<references><ref name="ciphertrace-1152">[https://ciphertrace.com/wp-content/uploads/2021/01/CipherTrace-Cryptocurrency-Crime-and-Anti-Money-Laundering-Report-012821.pdf CipherTrace Cryptocurrency Crime and Anti-Money Laundering Report 2020] (Jun 20, 2021)</ref>

	<ref name="slowmisthacked-678">[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17, 2021)</ref>		<ref name="slowmisthacked-678">[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 18, 2021)</ref>

	<ref name="crypto-1642">[https://crypto.com/price/vether Vether Price \| VETH Price, USD converter, Charts \| Crypto.com] (Jul 12, 2021)</ref>		<ref name="crypto-1642">[https://crypto.com/price/vether Vether Price \| VETH Price, USD converter, Charts \| Crypto.com] (Jul 13, 2021)</ref>

	<ref name="vetherasset-1643">[https://www.vetherasset.io/ Vether - A strictly-scarce Ethereum based asset.] (Jul 12, 2021)</ref>		<ref name="vetherasset-1643">[https://www.vetherasset.io/ Vether - A strictly-scarce Ethereum based asset.] (Jul 13, 2021)</ref>

	<ref name="coingecko-1644">[https://www.coingecko.com/en/coins/vether Vether price, VETH chart, market cap, and info \| CoinGecko] (Jul 13, 2021)</ref>		<ref name="coingecko-1644">[https://www.coingecko.com/en/coins/vether Vether price, VETH chart, market cap, and info \| CoinGecko] (Jul 14, 2021)</ref>

	<ref name="randomizedxyzmedium-1645">[https://randomizedxyz.medium.com/vether-upgrade-deployed-56141061263f Vether Upgrade Deployed] (Jul 13, 2021)</ref>		<ref name="randomizedxyzmedium-1645">[https://randomizedxyz.medium.com/vether-upgrade-deployed-56141061263f Vether Upgrade Deployed] (Jul 14, 2021)</ref>

	<ref name="vetherassetmedium-1646">[https://medium.com/vether-asset/vether-contract-upgrade-c2cf62b9aee2 Vether Contract Upgrade] (Jul 13, 2021)</ref>		<ref name="vetherassetmedium-1646">[https://medium.com/vether-asset/vether-contract-upgrade-c2cf62b9aee2 Vether Contract Upgrade] (Jul 14, 2021)</ref>

	<ref name="strictlyscarcetwitter-2544">[https://twitter.com/strictly_scarce/status/1278215001484849158 @strictly_scarce Twitter] (Aug 14, 2021)</ref></references>		<ref name="strictlyscarcetwitter-2544">[https://twitter.com/strictly_scarce/status/1278215001484849158 @strictly_scarce Twitter] (Aug 15, 2021)</ref></references>

Azoundria at 17:19, 17 February 2023

2023-02-17T17:19:01Z

← Older revision		Revision as of 11:19, 17 February 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/vetherv3exploited.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/vetherv3exploited.php}}
			{{Unattributed Citations}}

	[[File:Vether.jpg\|thumb\|Vether]]Vether was a crypto-asset which has a heavily limited supply.		[[File:Vether.jpg\|thumb\|Vether]]Vether was a crypto-asset which has a heavily limited supply.
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	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.
			<ref name="ciphertrace-1152" /><ref name="slowmisthacked-678" /><ref name="crypto-1642" /><ref name="vetherasset-1643" /><ref name="coingecko-1644" /><ref name="randomizedxyzmedium-1645" /><ref name="vetherassetmedium-1646" /><ref name="strictlyscarcetwitter-2544" />

	== About Vether ==		== About Vether ==
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	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* 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.		* Anything that wasn't reasonably knowable at the time of the event.
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	\|-		\|-
	\|June 30th, 2020 12:00:00 AM		\|June 30th, 2020 12:00:00 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
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	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $900,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
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	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ recovered.		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
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	== References ==		== References ==
	[https://ciphertrace.com/wp-content/uploads/2021/01/CipherTrace-Cryptocurrency-Crime-and-Anti-Money-Laundering-Report-012821.pdf CipherTrace Cryptocurrency Crime and Anti-Money Laundering Report 2020] (Jun 19)		<references><ref name="ciphertrace-1152">[https://ciphertrace.com/wp-content/uploads/2021/01/CipherTrace-Cryptocurrency-Crime-and-Anti-Money-Laundering-Report-012821.pdf CipherTrace Cryptocurrency Crime and Anti-Money Laundering Report 2020] (Jun 19, 2021)</ref>

	[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17)		<ref name="slowmisthacked-678">[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17, 2021)</ref>

	[https://crypto.com/price/vether Vether Price \| VETH Price, USD converter, Charts \| Crypto.com] (Jul 12)		<ref name="crypto-1642">[https://crypto.com/price/vether Vether Price \| VETH Price, USD converter, Charts \| Crypto.com] (Jul 12, 2021)</ref>

	[https://www.vetherasset.io/ Vether - A strictly-scarce Ethereum based asset.] (Jul 12)		<ref name="vetherasset-1643">[https://www.vetherasset.io/ Vether - A strictly-scarce Ethereum based asset.] (Jul 12, 2021)</ref>

	[https://www.coingecko.com/en/coins/vether Vether price, VETH chart, market cap, and info \| CoinGecko] (Jul 13)		<ref name="coingecko-1644">[https://www.coingecko.com/en/coins/vether Vether price, VETH chart, market cap, and info \| CoinGecko] (Jul 13, 2021)</ref>

	[https://randomizedxyz.medium.com/vether-upgrade-deployed-56141061263f Vether Upgrade Deployed] (Jul 13)		<ref name="randomizedxyzmedium-1645">[https://randomizedxyz.medium.com/vether-upgrade-deployed-56141061263f Vether Upgrade Deployed] (Jul 13, 2021)</ref>

	[https://medium.com/vether-asset/vether-contract-upgrade-c2cf62b9aee2 Vether Contract Upgrade] (Jul 13)		<ref name="vetherassetmedium-1646">[https://medium.com/vether-asset/vether-contract-upgrade-c2cf62b9aee2 Vether Contract Upgrade] (Jul 13, 2021)</ref>

	[https://twitter.com/strictly_scarce/status/1278215001484849158 @strictly_scarce Twitter] (Aug 14)		<ref name="strictlyscarcetwitter-2544">[https://twitter.com/strictly_scarce/status/1278215001484849158 @strictly_scarce Twitter] (Aug 14, 2021)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/vetherv3exploited.php}} VetherVether was a crypto-asset which has a heavily limited supply. A series of exploits were found, each resulting in an upgrade to the protocol, the latest of which was last year. The lost assets were reimbursed in V4. This is a global/international case not involving a specific country. == About Vether == Vether is a "strictly-scarce Ethereu..."

2023-01-25T17:32:48Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/vetherv3exploited.php}} thumb|VetherVether was a crypto-asset which has a heavily limited supply. A series of exploits were found, each resulting in an upgrade to the protocol, the latest of which was last year. The lost assets were reimbursed in V4. This is a global/international case not involving a specific country. == About Vether == Vether is a "strictly-scarce Ethereu..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/vetherv3exploited.php}}

[[File:Vether.jpg|thumb|Vether]]Vether was a crypto-asset which has a heavily limited supply.

A series of exploits were found, each resulting in an upgrade to the protocol, the latest of which was last year.

The lost assets were reimbursed in V4.

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

== About Vether ==
Vether is a "strictly-scarce Ethereum based asset." "Vether is designed to be a store-of-value with properties of strict scarcity, unforgeable costliness, and a fixed emission schedule." It describes itself as "[a]n asset that stores value created by dreamers and builders. With limited supply and with technical properties that allow for even fairer distribution and transparent costs."

"There will only be 1,000,000 Veth ever." "No one can control it and there’s no blacklist. Every day a portion gets released to whoever burns Ether for it. This mechanism is called Proof-of-Value." "Every Veth in the world was paid for by Ethereum."

"Vether’s still in its infancy and its beauty is in its simplicity. At the same time, as with every major crypto (ETH, BTC, etc.), it has its share of growing pains."

"On June 30, Vether (VETH) had their entire Uniswap pool drained, about 919,299 (VETH) equivalent to US$900K, for just 0.9 ETH ($200)."

"Before going forward, we need to note that Strictly-Scarce loves simplicity. So much so that Vether V3 had the ability to upgrade from V2 to V3 and skip an approval step, breaking from the ERC-20 standard."

"You also need to know that Vether has a little used feature. You have the ability to exclude an address from the transfer fee of 10 basis points built into Vether. For most folks this is unnecessary, but this feature played a big role in the exploitation of Vether V3."

"Feeling the pressures of a potential illegitimate grab of the remaining Vether V2, the community and dev pushed out V3. Unbeknownst to most upgraders, there was a fatal flaw created by the shortcut created for upgrading from V2 to V3."

"By paying the 128 Vether fee, someone could control all of the Vether V3 using the flaw in the code. This came to light when someone anonymous (we’ll call this person “Anon”) bought Vether off Uniswap and then paid the 128 exclusion fee. They then claimed all the Vether in the Vether contract. About 900,000 Vether. They then dumped 150,000 Vether into Uniswap and pulled out ~15 Ethereum (not $900,000 as you may have read on Twitter). This devalued all Vether V3 and destroyed its value."

"Coingecko researcher Daryllautk tweeted that VETH suffered a hacker attack on the decentralized exchange Uniswap. The hacker stole 919,299 VETH (worth $900,000) using only 0.9ETH. After the attack, VETH officially stated that the contract was used by the UX improvement it placed in transferForm(), which was their fault. They will redeploy vether4 and will compensate all affected Uniswap pledgers."

"Vether V3 was an upgrade to ensure folks could upgrade without having someone take their Vether. The upgrade was conducted before anyone could utilize the exploit and was completed as a precaution and went into effect shortly after the end of Vether Day 49." "V4 is up. You may resume burning ETH for VETH."

"All Vether V4 has been airdropped based on wallets in the snapshot. Ether has been reimbursed to folks who burned Vether in Day 51, to folks who had pooled their Vether and lost Ether due to the exploit, and even some folks who purchased Vether after the exploit and before the last upgrade to V4."

"These are growing pains and it is a testament to the dev and community that issues were caught, acknowledged, and dealt with. You can tell a lot about someone by how they deal with adversity and if anything, Vether was made stronger by the work the entire community put in to make things right, learn from their mistakes, and set a better foundation for the future."

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 - Vether V3 Exploited
!Date
!Event
!Description
|-
|June 30th, 2020 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 ==
No assets were lost in this case, since the protocol relaunched.

== References ==
[https://ciphertrace.com/wp-content/uploads/2021/01/CipherTrace-Cryptocurrency-Crime-and-Anti-Money-Laundering-Report-012821.pdf CipherTrace Cryptocurrency Crime and Anti-Money Laundering Report 2020] (Jun 19)

[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17)

[https://crypto.com/price/vether Vether Price | VETH Price, USD converter, Charts | Crypto.com] (Jul 12)

[https://www.vetherasset.io/ Vether - A strictly-scarce Ethereum based asset.] (Jul 12)

[https://www.coingecko.com/en/coins/vether Vether price, VETH chart, market cap, and info | CoinGecko] (Jul 13)

[https://randomizedxyz.medium.com/vether-upgrade-deployed-56141061263f Vether Upgrade Deployed] (Jul 13)

[https://medium.com/vether-asset/vether-contract-upgrade-c2cf62b9aee2 Vether Contract Upgrade] (Jul 13)

[https://twitter.com/strictly_scarce/status/1278215001484849158 @strictly_scarce Twitter] (Aug 14)