Authereum Metatransactions Order

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Authereum

Now you can give access to your funds from anywhere with just a single username and password. A great feature for the average user who isn't the best at making secure passwords, operates often on computers which are public or contain malware, and often will use the same password for multiple accounts. Free yourself from the need to save a backup of anything! If you want, you can even set up a complex feature so that when you lose your phone or it gets damaged, it generously and permanently donates all your funds to the blockchain network of your choice.

As a special bonus, this system depends on a smart contract which comes with an additional vulnerability which wasn't found in the smart contract audit. Luckily, only $11,400 USD of funds were at risk and the vulnerability was found before it was exploited.

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

About Authereum

"Authereum was founded May 15th 2019, by Chris Whinfrey, Miguel Mota and Shane Fontaine." "We’re a new project and have big plans for our smart contracts."

"Authereum is an Ethereum-based wallet and dApp login solution. It allows users to easily interact with web 3 applications via any browser, using nothing but a username and password." "By enabling the use of just a username and password, Authereum has removed the need for the additional installation of any extra software, greatly improving accessibility for non-technical users."

"No downloads, no seed phrases. Simply, the best Web3 experience at your fingertips. Built by blockchain security experts to keep your assets safe. You and only you can access your funds. Add recovery accounts in case you lose access to your account. Add Google Authenticator or hardware keys as an extra layer of protection for your account. Top decentralized projects trust Authereum. Only you can access your assets. Each account is 100% non-custodial, allowing you and only you to access your funds. You’re safe even if our servers get compromised. Access to your tokens, collectibles and last transactions anytime and with any device. Integrate directly by Authereum or use your favorite web3 library."

A "smart contract audit was prepared by Quantstamp" on "2020-01-21 through 2020-02-03". "The scope of the audit was limited to the contracts located in two folders: account and upgradeability. The code is overall well-written and documented."

"On Monday, February 17th, 2020, [the Authereum] team received a vulnerability disclosure from samczsun. The vulnerability takes advantage of the order of operations in one of the account contract’s meta transaction functions and allows an attacker take control of the account. Please see samczsun’s detailed write up here."

"Thanks to the responsible disclosure, [the] team was able to quickly triage the issue and execute on a plan to secure users’ funds that evening. We’re relieved to say that no funds were lost and users are in complete control of their accounts."

"To fix the issue, [they] used the exploit to force upgrade the account to the patched implementation, and then released control back to the user. [They] were able to do this with nearly zero interruption in service and without losing a penny of the $11,422.64 that was at risk."

"As we continue to iterate, we’ll be engaging in additional security audits to get more eyes on the code. Also, the auditing firm we previously engaged with has graciously offered to put the cost of the audit towards a bug bounty for Authereum with half of those funds going to samczsun for this discovery. Lastly, we plan on exploring options with Nexus Mutual to provide coverage for users in the event of an exploited smart contract vulnerability in 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.

Key Event Timeline - Authereum Metatransactions Order

Date	Event	Description
February 18th, 2020	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

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 $11,000 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

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?

General Prevention Policies

No user funds were lost in this case.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.