Casper DeFi Malicious Backdoor Mint

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Casper DeFi

Casper Defi launched a simple investing platform where all funds can be stored in a smart contract hot wallet. One of their developers who made the contract added a backdoor durign the migration. This gave him the ability to mint tokens, which he used to drain all the stored liquidity.

Since he had worked as a developer, the team still had a massive amount of information on him. He was very quickly motivated to return the funds.

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

About Casper DeFi

"Casper DeFi is a Multi Chain DeFi Suite, We’re here to make investing simple." "Casper DeFi is an all-in-one crypto suite, Our mission is to make investing simple & safe. We believe in building useful & unique dapps that will improve crypto."

"Casper Tracker is a Multi-Chain Crypto tracking platform. You can check live prices, liquidity, trades & more! Now on Fantom Opera & soon on Binance Smart Chain, Ethereum, KCC, Matic, Solana."

"Casper Farming will allow you to earn Casper or other tokens. All pools/farms will be vetted from low risk - high risk. Now on Fantom Opera & soon on BSC, ETH, KCC, Matic, Solana."

"On Aug-04–2021 07:47:57 AM +UTC our Solidity Dev named MikeEther, minted 200,000 Casper Tokens. He then proceeded to mint another 200,000,000 Casper Token to sell on SpiritSwap. This caused the price of Casper to dump more than 99%, making it effectively worthless."

"Mike was able to mint Casper tokens by adding a backdoor in our contract. He transferred ownership to our Company Wallet, but also left code which allowed him to re take control and mint new tokens." "Mike told [the team] that he actually didn’t make the contracts. Instead he hired “forkswap.org” & they created the contract, hacked CASPER & then sent him the money. We’ll let you believe what you want.."

"Mike was able to steal $172,411.75 worth of Casper Tokens. He sold the Casper tokens to WFTM & then proceeded to buy BNB with most of the stolen WFTM. He then bridged the BNB to BSC. Total BNB transferred was 516.559241667 BNB (The total swapped amount is a bit higher, however this is what he got due to bridge fees)."

"Next he swapped the BNB a few hours later to BTCB (tx1, tx2); and then sold his BTCB to the Bitcoin Network."

"We have come up with a list of steps to get back on the rocket. First off, we are going to finish up the Casper Tracker (we are in the process of getting a brand new UI & Assets)." "Once we launch the Casper Tracker we will proceed to finish building CasperPad. CasperPad will be the platform were we will launch the new Casper Token." "In regards to the Casper Token contract, we will make sure our code is audited & checked by trusted devs in the community & other agencies."

"New Casper tokens will be airdropped to old holders; a list of addresses will be released soon." "We will also add a fee to pools for repayment. Fee’s collected from the pools will be sent to our wallet, and then distributed to all holders affected by this hack at the end of the week." "We’re going to pay back holders at $2.00 per Casper Token until we have paid everyone back."

"Finally, I want you all to know that we are not forgetting about Mike. We have gathered tons of information on him (IP, Links, Wallets & More), and we have given him 12 hours to contact us or we will move forward with our FBI report. We will keep you fully updated on everything that happens." "We’re offering [Mike] a 10,000 bounty if you return the funds & we won’t release our report to the FBI."

"Mike sent [the team] a message on Aug 7th at 9:06AM EST saying “Hello Mate” & “I will return the money”." "Our Team also was able to find his real full name, address, family, phone number, place of work & more. We’re also not finished, If you’re wondering which wallet did Mike send the stolen BTC? Not a Ledger, not a Trezor, not even a hot wallet.. He sent it to a CEX. Mike later on sent us 4 BTC & .35 BTC the next day due the using the daily limit on a CEX."

"We agreed not to finish our FBI report if he returns the funds, which he did (He return more). So we’re going to keep a close eye on him & warn everyone about him, but Mike wants one more thing."

"Because we got the fund back everything changes, we’re going to still create a new token & launch it on CasperPad. We’re also going to airdrop all holders before the hack new tokens. On top of that we’re going to return everyone money for LP pairs. For example if you had SPIRIT-CASPER we’re going to refund you the usdc value of SPIRIT at the time of the hack. We’re still getting the snapshot & it will take some time."

"We have sent out all refunds to LP holders & Casper Holders. Everyone got a refund who was holding before the hack happened. Thank you all again for supporting!" "Now that we refunded people we're starting to move forward to get back on track! We have a lot planned this month! The following things we have planned: Casper Tracker Launch, CasperPad Launch, Casper Farms 2.0."

"We might be trending on CoinGecko but please don’t buy the Casper token until we release a new one! Thank you."

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 - Casper DeFi Malicious Backdoor Mint

Date	Event	Description
August 4th, 2021	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 $172,000 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

Minting contracts should always use a multi-signature wallet, and need to be audited to ensure this is set up correctly.

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.