TCH Token Transaction Signature Malleability Issue

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Generic Binance Security Image

The TCH Token on the Binance Smart Chain doesn't appear to have an official website or social media, but multiple security firms found that this smart contract had been exploited and $18-$19k were drained from the smart contract. Given that there is no indication who is behind the token, it would seem unlikely that any resolution is available for affected users.

About TCH Token

Address: https://bscscan.com/address/0x5d78cfc8732fd328015c9b73699de9556ef06e8e

Unclear if potentially related: https://bscscan.com/address/0x9c6c2617D408F50fEF599A3e03c4c464293fdAD3%7CJun 7, 2024 https://tchtoken.com/%7CJun 7, 2024 https://www.tradingview.com/symbols/TCHUSDT/minds/%7CJun 7, 2024 https://etherscan.io/token/0x9972a0f24194447e73a7e8b6cd26a52e02ddfad5%7CJun 7, 2024 https://coinpaprika.com/coin/tch-tch-token/%7CJun 7, 2024 https://bscscan.com/token/0xc9586f53cd7bd2b1fa3549218e9756306cd09053%7CJun 7, 2024 https://bscscan.com/address/0x5d78cfc8732fd328015c9b73699de9556ef06e8e%7CJun 7, 2024

The Reality

"The vulnerable contract has a burnToken function that verifies a signature for authorization. To prevent signature replay it stores the used signatures in a mapping which can be bypassed if a signature is tampered."

What Happened

"TCH token has been exploited for 18k due to a CTF-style signature malleability"

Key Event Timeline - TCH Token Transaction Signature Malleability Issue

Date	Event	Description
May 13th, 2024 9:28:13 PM MDT	TCH Token Creation	The TCH token smart contract is first created.
May 16th, 2024 9:42:08 AM MDT	Exploit Transaction	A profitable exploit which gains $18k worth of funds is highlighted by Decurity.
May 16th, 2024 12:54:00 PM MDT	DecurityHQ Tweet	Decurity posts a tweet highlighting the vulnerability in the TCH Token transaction.
May 17th, 2024 12:41:00 AM MDT	SlowMist Tweet	SlowMist tweets about the transaction and loss which they've uncovered.

Technical Details

"TCH token has been exploited for 18k due to a CTF-style signature malleability"

"The vulnerable contract has a burnToken function that verifies a signature for authorization. To prevent signature replay it stores the used signatures in a mapping which can be bypassed if a signature is tampered."

"The attacker harvested previously submitted signatures and modified the `v` part of the signature: instead of 0x01 they submitted 0x1c (28). As a result the signature was successfully verified with ecrecover, however a different sig was stored in the mapping."

"As a result the attacker burned lots of TCH tokens owned by the PancakeSwap pair, which allowed him to manipulate the price in the pool and take the profit."

Total Amount Lost

$18-$19k

The total amount lost has been estimated at $18,000 USD.

Immediate Reactions

"According to the SlowMist security team's monitoring, the TCH token on the BNBChain has been continuously attacked due to a malleability issue, resulting in a loss of approximately $19,000."

"We have detected that the $TCH token is being continuously exploited due to malleability issue."

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

The total amount recovered is unknown.

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?

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.