WorkQuest ChainSwap Breach - Revision history

Azoundria at 17:49, 3 May 2023

2023-05-03T17:49:24Z

← Older revision		Revision as of 11:49, 3 May 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/workquestchainswapbreach.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/workquestchainswapbreach.php}}
	{{Unattributed Sources}}		{{Unattributed Sources}}

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	The ChainSwap bridge was hacked, and the attacker was able to obtain tokens from multiple projects, which were sold. While multiple sources have included the WorkQuest project as one of the victims, it's unclear how WorkQuest was affected and what actions WorkQuest took, if any.		The ChainSwap bridge was hacked, and the attacker was able to obtain tokens from multiple projects, which were sold. While multiple sources have included the WorkQuest project as one of the victims, it's unclear how WorkQuest was affected and what actions WorkQuest took, if any.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.<ref name="theblockbeats-2619" /><ref name="chainswapmedium-2627" /><ref name="etherscan-2628" /><ref name="decrypt-2629" /><ref name="chainswaptwitter-2624" /><ref name="halborn-2630" /><ref name="cryptobriefing-2631" /><ref name="chainswapmedium-3239" /><ref name="rektnews-3240" /><ref name="openblocksecgithub-2342" /><ref name="coinmarketcap-3278" /><ref name="workquest-3279" /><ref name="workquestmedium-3280" /><ref name="workquestmedium-3281" /><ref name="workquestmedium-3282" /><ref name="losslesscashmedium-7654" /><ref name="cryptopotato-7657" />
	<ref name="theblockbeats-2619" /><ref name="chainswapmedium-2627" /><ref name="etherscan-2628" /><ref name="decrypt-2629" /><ref name="chainswaptwitter-2624" /><ref name="halborn-2630" /><ref name="cryptobriefing-2631" /><ref name="chainswapmedium-3239" /><ref name="rektnews-3240" /><ref name="openblocksecgithub-2342" /><ref name="coinmarketcap-3278" /><ref name="workquest-3279" /><ref name="workquestmedium-3280" /><ref name="workquestmedium-3281" /><ref name="workquestmedium-3282" /><ref name="losslesscashmedium-7654" /><ref name="cryptopotato-7657" />

	== About WorkQuest ==		== About WorkQuest ==
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	!Description		!Description
	\|-		\|-
	\|July 11th, 2021 ~~12:00:00 AM~~		\|July 11th, 2021
	\|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 ==
	== Prevention Policies ==
	Theoretically, decentralized finance will eventually result in hackers having exploited every vulnerability that exists. However, it's impossible to know when that will occur and if a contract is truly secure, as opposed to there still being an exploit that just hasn't been noticed yet. For any complex smart contract, it's impossible to prove security and plenty of fully audited contracts have been exploited.		Theoretically, decentralized finance will eventually result in hackers having exploited every vulnerability that exists. However, it's impossible to know when that will occur and if a contract is truly secure, as opposed to there still being an exploit that just hasn't been noticed yet. For any complex smart contract, it's impossible to prove security and plenty of fully audited contracts have been exploited.

	Platforms should, generally, be prepared for the full loss of all assets stored in hot wallets (including smart contracts). Assets that do not need to be accessed quickly should be stored securely in a simple offline multi-signature wallet.		Platforms should, generally, be prepared for the full loss of all assets stored in hot wallets (including smart contracts). Assets that do not need to be accessed quickly should be stored securely in a simple offline multi-signature wallet.
			== 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 ==

Azoundria at 03:50, 23 February 2023

2023-02-23T03:50:44Z

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/workquestchainswapbreach.php}} WorkQuestWorkQuest is an online marketplace which enables the effective hiring and payment of remote employees through a blockchain application, with a public reputation system. Their Work Quest tokens used ChainSwap to exist on multiple blockchains, which required some funds to be stored in the smart contract hot wallet. The ChainSwap b..."

2023-01-27T20:58:13Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/workquestchainswapbreach.php}} thumb|WorkQuestWorkQuest is an online marketplace which enables the effective hiring and payment of remote employees through a blockchain application, with a public reputation system. Their Work Quest tokens used ChainSwap to exist on multiple blockchains, which required some funds to be stored in the smart contract hot wallet. The ChainSwap b..."

New page

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

[[File:Workquest.jpg|thumb|WorkQuest]]WorkQuest is an online marketplace which enables the effective hiring and payment of remote employees through a blockchain application, with a public reputation system. Their Work Quest tokens used ChainSwap to exist on multiple blockchains, which required some funds to be stored in the smart contract hot wallet.

The ChainSwap bridge was hacked, and the attacker was able to obtain tokens from multiple projects, which were sold. While multiple sources have included the WorkQuest project as one of the victims, it's unclear how WorkQuest was affected and what actions WorkQuest took, if any.

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

== About WorkQuest ==
"Integrating DeFi and Recruitment" with a "[g]lobal end-to-end jobs marketplace powered on smart-contracts."

"WorkQuest is the online Marketplace and decentralized Payment Provider connecting employers with employees anywhere in the world powered by Smart Contracts governed by DAO. WorkQuest will have Mobile Applications making available working anywhere and use its own Work Net Blockchain and Wallet." "The platform incentivizes employers and employees to deal honestly and prudently using its Rating System with all the feedback is stored in a blockchain. As platforms act as a facilitator of transactions between employer and the employee, different DeFi products available for platform participants, such as Savings, Retirement & Disability Insurance."

"The Work Quest team discovered that there was a massive opportunity existing in the labor market. Employers’ problem finding the right personnel with the right mix of skills has always coaxed them to fall prey for the low-level quality services. On the other hand, job seekers with the right skills find it challenging to find good employers. It’s quite evident that there’s a huge difference in the distribution of skills worldwide."

"Work Quest creates an international platform that aims to solve this through a bridge. This bridge connects both the employees and employers by using blockchain technology and smart contracts. Work Quest’s ecosystem consists of a payment system that uses both a stable coin and the Work Quest token (WQT). The token, WQT, is used as the voting token in the Work Quest DAO. Holders of the WQT are responsible for making any changes voted for in the Work net blockchain."

"The Work Quest DAO landscapes tokens act as its core property, letting organizations in any industry spend. Also, such tokens act as reward systems explicit to activities within the platform. About the Work Quest platform, the users investing in Work Quest DAO obtain all voting rights. In turn, it impacts the way the network runs."

"Binance Smart Chain has become one of the leading and most popular blockchain networks out there. WorkQuest team is glad to bring the $WQT token to BSC in order to make trading of $WQT as convenient, as possible. We are excited to announce that we have partnered with ChainSwap to make the $WQT token cross-chain between ETH and BSC."

"ChainSwap is a bridge protocol that links the Ethereum and Binance Smart Chain (BSC) blockchains." "It supports Binance Smart Chain, Ethereum, Polygon, and Huobi Eco Chain." "The ChainSwap hacker identified and exploited a vulnerability in the ChainSwap smart contract. This vulnerability enabled them to steal and mint new tokens for various protocols that were using the bridge to trade across Ethereum and BSC."

Investigation by ChainSwap revealed "a bug in the token cross-chain quota code. The on-chain swap bridge quota is automatically increased by the signature node, which is intended to be more decentralized without manual control. However, due to a logical flaw in code, this led to an exploit by allowing invalid addresses which weren’t whitelisted to automatically increase the amount."

"The attacker managed to take control of the projects’ BSC contracts by exploiting ChainSwap. The attacker minted tokens directly to their address, then sold them on BSC’s most popular decentralized exchange, PancakeSwap." "[T]he attacker used the PancakeSwap exchange to convert the stolen tokens to WBNB, DAI, and other tokens."

"Chainswap said it had already repurchased a small amount of the affected tokens from the market and returned the contract wallet. The rest will be paid out in full by the Chainswap vault." "ChainSwap team has now prepared and executed a compensation plan in consensus with the affected projects." "In order to bring everybody a more rigorous, efficient bridge, the next development model of ChainSwap will be adjusted to ensure maximum safety."

"For now, Chainswap has temporarily closed its cross-chain bridge." "ChainSwap worked with the police and OKEx to identify the attackers, and managed to negotiate the recovery of Corra and Rai tokens. An initial email with the attackers suggested the attackers return $1 million."

“Sorry for the trouble, you sound genuinely like great people but money is money,” the attackers of the earlier exploit told ChainSwap.

"ChainSwap is excited to announce that we have successfully integrated with Anyswap and Chainswap bridge is now live. We thank our community for its patience during the last few weeks."

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 - WorkQuest ChainSwap Breach
!Date
!Event
!Description
|-
|July 11th, 2021 12:00:00 AM
|Main Event
|Expand this into a brief 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 ==
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?

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

== Prevention Policies ==
Theoretically, decentralized finance will eventually result in hackers having exploited every vulnerability that exists. However, it's impossible to know when that will occur and if a contract is truly secure, as opposed to there still being an exploit that just hasn't been noticed yet. For any complex smart contract, it's impossible to prove security and plenty of fully audited contracts have been exploited.

Platforms should, generally, be prepared for the full loss of all assets stored in hot wallets (including smart contracts). Assets that do not need to be accessed quickly should be stored securely in a simple offline multi-signature wallet.

== References ==
[https://www.theblockbeats.com/en/news/25348 Chainswap Black Sunday, over 20 DEFI projects were stolen - 律动BlockBeats] (Aug 23)

[https://chain-swap.medium.com/chainswap-exploit-11-july-2021-post-mortem-6e4e346e5a32 ChainSwap Exploit 11 July 2021 Post-Mortem | by ChainSwap | Medium] (Aug 23)

[https://etherscan.io/address/0x06c24002f43e3AF904EeEc581734EA3A7DbF355E#code MappableToken | 0x06c24002f43e3AF904EeEc581734EA3A7DbF355E] (Aug 23)

[https://decrypt.co/75698/chainswap-exploit-leads-to-multi-million-loss-for-defi-tokens ChainSwap Exploit Leads to Multi-Million Loss For DeFi Tokens - Decrypt] (Aug 23)

[https://twitter.com/chain_swap/status/1414019554603307017 @chain_swap Twitter] (Aug 23)

[https://halborn.com/explained-the-chainswap-hack-july-2021/ Explained: The ChainSwap Hack (July 2021) - Halborn] (Aug 23)

[https://cryptobriefing.com/8-million-lost-major-chainswap-exploit/ $8 Million Lost in Major ChainSwap Exploit | Crypto Briefing] (Aug 23)

[https://chain-swap.medium.com/chainswap-re-launch-we-are-live-5e85d2f9c80f ChainSwap re-launch, we are live. ChainSwap is excited to announce that… | by ChainSwap | Medium] (Aug 28)

[https://www.rekt.news/chainswap-rekt/ Rekt - ChainSwap - REKT] (Aug 28)

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

[https://coinmarketcap.com/currencies/workquest/ WorkQuest Token price today, WQT to USD live, marketcap and chart | CoinMarketCap] (Sep 14)

[https://workquest.co/ WorkQuest - Global end-to-end jobs marketplace with quest mechanics] (Sep 14)

[https://workquest.medium.com/the-work-quest-dao-c63fb5bc825c The Work Quest Dao] (Sep 20)

[https://workquest.medium.com/three-things-that-make-work-quest-different-from-other-job-boards-6fc5e364a6ea Three Things That Make Work Quest Different From Other Job Boards] (Sep 20)

[https://workquest.medium.com/wqt-is-now-available-on-binance-smart-chain-624add139ca0 Wqt Is Now Available On Binance Smart Chain] (Sep 20)

[https://losslesscash.medium.com/chainswap-post-mortem-deep-dive-into-the-exploit-b5e7d2f58758 Chainswap Post Mortem Deep Dive Into The Exploit] (May 7)

[https://cryptopotato.com/random-numbers-dont-lie-a-closer-technical-look-into-recent-defi-hacks/ Random Numbers Don’t Lie: A Closer Technical Look into Recent DeFi Hacks] (May 7)

← Older revision		Revision as of 21:50, 22 February 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/workquestchainswapbreach.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/workquestchainswapbreach.php}}
			{{Unattributed Sources}}

	[[File:Workquest.jpg\|thumb\|WorkQuest]]WorkQuest is an online marketplace which enables the effective hiring and payment of remote employees through a blockchain application, with a public reputation system. Their Work Quest tokens used ChainSwap to exist on multiple blockchains, which required some funds to be stored in the smart contract hot wallet.		[[File:Workquest.jpg\|thumb\|WorkQuest]]WorkQuest is an online marketplace which enables the effective hiring and payment of remote employees through a blockchain application, with a public reputation system. Their Work Quest tokens used ChainSwap to exist on multiple blockchains, which required some funds to be stored in the smart contract hot wallet.
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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="theblockbeats-2619" /><ref name="chainswapmedium-2627" /><ref name="etherscan-2628" /><ref name="decrypt-2629" /><ref name="chainswaptwitter-2624" /><ref name="halborn-2630" /><ref name="cryptobriefing-2631" /><ref name="chainswapmedium-3239" /><ref name="rektnews-3240" /><ref name="openblocksecgithub-2342" /><ref name="coinmarketcap-3278" /><ref name="workquest-3279" /><ref name="workquestmedium-3280" /><ref name="workquestmedium-3281" /><ref name="workquestmedium-3282" /><ref name="losslesscashmedium-7654" /><ref name="cryptopotato-7657" />

	== About WorkQuest ==		== About WorkQuest ==
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	== References ==		== References ==
	[https://www.theblockbeats.com/en/news/25348 Chainswap Black Sunday, over 20 DEFI projects were stolen - 律动BlockBeats] (Aug 23)		<references><ref name="theblockbeats-2619">[https://www.theblockbeats.com/en/news/25348 Chainswap Black Sunday, over 20 DEFI projects were stolen - 律动BlockBeats] (Aug 24, 2021)</ref>

	[https://chain-swap.medium.com/chainswap-exploit-11-july-2021-post-mortem-6e4e346e5a32 ChainSwap Exploit 11 July 2021 Post-Mortem \| by ChainSwap \| Medium] (Aug 23)		<ref name="chainswapmedium-2627">[https://chain-swap.medium.com/chainswap-exploit-11-july-2021-post-mortem-6e4e346e5a32 ChainSwap Exploit 11 July 2021 Post-Mortem \| by ChainSwap \| Medium] (Aug 24, 2021)</ref>

	[https://etherscan.io/address/0x06c24002f43e3AF904EeEc581734EA3A7DbF355E#code MappableToken \| 0x06c24002f43e3AF904EeEc581734EA3A7DbF355E] (Aug 23)		<ref name="etherscan-2628">[https://etherscan.io/address/0x06c24002f43e3AF904EeEc581734EA3A7DbF355E#code MappableToken \| 0x06c24002f43e3AF904EeEc581734EA3A7DbF355E] (Aug 24, 2021)</ref>

	[https://decrypt.co/75698/chainswap-exploit-leads-to-multi-million-loss-for-defi-tokens ChainSwap Exploit Leads to Multi-Million Loss For DeFi Tokens - Decrypt] (Aug 23)		<ref name="decrypt-2629">[https://decrypt.co/75698/chainswap-exploit-leads-to-multi-million-loss-for-defi-tokens ChainSwap Exploit Leads to Multi-Million Loss For DeFi Tokens - Decrypt] (Aug 24, 2021)</ref>

	[https://twitter.com/chain_swap/status/1414019554603307017 @chain_swap Twitter] (Aug 23)		<ref name="chainswaptwitter-2624">[https://twitter.com/chain_swap/status/1414019554603307017 @chain_swap Twitter] (Aug 24, 2021)</ref>

	[https://halborn.com/explained-the-chainswap-hack-july-2021/ Explained: The ChainSwap Hack (July 2021) - Halborn] (Aug 23)		<ref name="halborn-2630">[https://halborn.com/explained-the-chainswap-hack-july-2021/ Explained: The ChainSwap Hack (July 2021) - Halborn] (Aug 24, 2021)</ref>

	[https://cryptobriefing.com/8-million-lost-major-chainswap-exploit/ $8 Million Lost in Major ChainSwap Exploit \| Crypto Briefing] (Aug 23)		<ref name="cryptobriefing-2631">[https://cryptobriefing.com/8-million-lost-major-chainswap-exploit/ $8 Million Lost in Major ChainSwap Exploit \| Crypto Briefing] (Aug 24, 2021)</ref>

	[https://chain-swap.medium.com/chainswap-re-launch-we-are-live-5e85d2f9c80f ChainSwap re-launch, we are live. ChainSwap is excited to announce that… \| by ChainSwap \| Medium] (Aug 28)		<ref name="chainswapmedium-3239">[https://chain-swap.medium.com/chainswap-re-launch-we-are-live-5e85d2f9c80f ChainSwap re-launch, we are live. ChainSwap is excited to announce that… \| by ChainSwap \| Medium] (Aug 29, 2021)</ref>

	[https://www.rekt.news/chainswap-rekt/ Rekt - ChainSwap - REKT] (Aug 28)		<ref name="rektnews-3240">[https://www.rekt.news/chainswap-rekt/ Rekt - ChainSwap - REKT] (Aug 29, 2021)</ref>

	[https://github.com/openblocksec/blocksec-incidents/blob/main/defi/2021.md blocksec-incidents/2021.md at main · openblocksec/blocksec-incidents · GitHub] (Aug 10)		<ref name="openblocksecgithub-2342">[https://github.com/openblocksec/blocksec-incidents/blob/main/defi/2021.md blocksec-incidents/2021.md at main · openblocksec/blocksec-incidents · GitHub] (Aug 11, 2021)</ref>

	[https://coinmarketcap.com/currencies/workquest/ WorkQuest Token price today, WQT to USD live, marketcap and chart \| CoinMarketCap] (Sep 14)		<ref name="coinmarketcap-3278">[https://coinmarketcap.com/currencies/workquest/ WorkQuest Token price today, WQT to USD live, marketcap and chart \| CoinMarketCap] (Sep 15, 2021)</ref>

	[https://workquest.co/ WorkQuest - Global end-to-end jobs marketplace with quest mechanics] (Sep 14)		<ref name="workquest-3279">[https://workquest.co/ WorkQuest - Global end-to-end jobs marketplace with quest mechanics] (Sep 15, 2021)</ref>

	[https://workquest.medium.com/the-work-quest-dao-c63fb5bc825c The Work Quest Dao] (Sep 20)		<ref name="workquestmedium-3280">[https://workquest.medium.com/the-work-quest-dao-c63fb5bc825c The Work Quest Dao] (Sep 21, 2021)</ref>

	[https://workquest.medium.com/three-things-that-make-work-quest-different-from-other-job-boards-6fc5e364a6ea Three Things That Make Work Quest Different From Other Job Boards] (Sep 20)		<ref name="workquestmedium-3281">[https://workquest.medium.com/three-things-that-make-work-quest-different-from-other-job-boards-6fc5e364a6ea Three Things That Make Work Quest Different From Other Job Boards] (Sep 21, 2021)</ref>

	[https://workquest.medium.com/wqt-is-now-available-on-binance-smart-chain-624add139ca0 Wqt Is Now Available On Binance Smart Chain] (Sep 20)		<ref name="workquestmedium-3282">[https://workquest.medium.com/wqt-is-now-available-on-binance-smart-chain-624add139ca0 Wqt Is Now Available On Binance Smart Chain] (Sep 21, 2021)</ref>

	[https://losslesscash.medium.com/chainswap-post-mortem-deep-dive-into-the-exploit-b5e7d2f58758 Chainswap Post Mortem Deep Dive Into The Exploit] (May 7)		<ref name="losslesscashmedium-7654">[https://losslesscash.medium.com/chainswap-post-mortem-deep-dive-into-the-exploit-b5e7d2f58758 Chainswap Post Mortem Deep Dive Into The Exploit] (May 7, 2022)</ref>

	[https://cryptopotato.com/random-numbers-dont-lie-a-closer-technical-look-into-recent-defi-hacks/ Random Numbers Don’t Lie: A Closer Technical Look into Recent DeFi Hacks] (May 7)		<ref name="cryptopotato-7657">[https://cryptopotato.com/random-numbers-dont-lie-a-closer-technical-look-into-recent-defi-hacks/ Random Numbers Don’t Lie: A Closer Technical Look into Recent DeFi Hacks] (May 7, 2022)</ref></references>