Transit Finance Swap Exploit Thefts

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Transit Swap Website

A hacker exploited a vulnerability in cross-chain DeFi platform Transit Finance, stealing $28.9 million. The hacker transferred 2,500 BNB tokens ($686,000) to Tornado Cash, a sanctioned privacy protocol. The hacker agreed to return 10,000 BNB ($2.74 million) to victims of the exploit. Security firms helped trace the hacker's IP address, leading to the return of $18.9 million. Transit Swap, the DEX affected, has received 70% of stolen funds back, with white hat hackers returning $24 million. Some funds were destroyed and irrecoverable. TransitFinance has taken responsibility for users' losses and will facilitate refunds and certificates for affected users. Additional rewards are also being offered to users waiting for refunds.

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

About Transit Finance

"On Friday last week, the hacker capitalized on an exploit on Transit Swap's swap contract, which typically facilitates the exchange of assets."

A hacker that stole $28.9 million from cross-bridge DeFi platform Transit Finance transferred 2,500 BNB tokens ($686,000) to sanctioned privacy protocol Tornado Cash. The hacker also reportedly agreed to return 10,000 BNB ($2.74 million) to victims of the exploit.

"Transit Swap said that $18.9 million has been returned after a slew of security firms helped triangulate the hacker's IP address."

"Transit Swap, a cross-chain decentralized exchange (DEX), has received 70% of stolen funds back from a hacker that exploited a smart contract vulnerability."

"Up to now, white hats have returned funds worth $24M, and funds worth $4.9M remained unrefunded (144,000 USDT worth of funds were sent into the blackhole by hacker#1 and permanently destroyed, and 1.4 million USDT worth of funds were lost when hacked#1 swap USDT to BNB and cannot be recovered forever)."

"With a responsible attitude towards users’ assets, TransitFinance Official will bear 100% of users’ losses"

"On October 14th, users can visit the refund website to claim the second batch of refunds and certificates(TS)."

"The remaining 3.94 million certificates(TS) will be exchanged monthly, and TransitFinance Official will give users an additional 3% as a waiting reward."

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 - Transit Finance Swap Exploit Thefts

Date	Event	Description
October 1st, 2022 12:34:15 PM MDT	First Successful Attack	The first successful attack happens on BSC.
October 3rd, 2022 9:00:00 AM MDT	CoinDesk Refund Article	Article on CoinDesk about the refund.
October 10th, 2022 12:14:16 PM MDT	Funds Returned	The attacker returns some of the stolen funds (6500 BNB).
October 13th, 2022 1:01:01 AM MDT	Funds Returned	The attacker returns some of the stolen funds.
October 21st, 2022	Transit Finance Relaunch	The service relaunches with a blog post.

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 $28,690,000 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

https://etherscan.io/tx/0x3da1843247070fbcfcf9c8d0e02dcd660ea882640fc842625b675aabc45e6a2a is the second refund returned.

The total amount recovered has been estimated at $24,000,000 USD.

Ongoing Developments

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

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.