Blocksec Collects Part of Funds
Blockchain security company Blocksec announced on the 9th that it had recovered 100 Ethereum (ETH) worth approximately 26 million yen from the hacked funds from SushiSwap (SUSHI). SushiSwap also has an update on the situation.
SushiSwap estimates that at least one account lost about 440 million yen ($3.3 million) due to a bug related to Approve in the RouterProcessor2 contract.
1/ Route Processor 2 @SushiSwap has a vulnerability that can drain accounts that approved to this contract. @0xsifu and rescued some funds. Unfortunately, some other funds cannot be rescued. https://t.co/Fky1kgGmvA pic.twitter.com/I4tJbZ82bU
—BlockSec (@BlockSecTeam) April 9, 2023
Blocksec says its system quickly detected the hacking attack and rescued some of its assets. However, he added that only about 5.6% of the stolen funds were recovered, while the rest could not be rescued.
In addition to this, Jared Gray, the head of SushiSwap, also confirmed that 300 Ethereum was recovered on the 9th. He said he has reached out to liquid staking protocol Lido Finance and is working to get the remaining 700 Ethereum back.
connection: Hacking worth 400 million yen on decentralized exchange SushiSwap
What is Liquid Staking?
A DeFi (decentralized finance) mechanism that allows you to operate alternative assets (staking proof tokens) while receiving cryptocurrency staking interest. There is an advantage that the liquidity of assets that have been locked up in the past can be released. Lido Finance, the largest service provider, stakes ETH and receives the bond token stETH, which can be used as collateral for lending or operated on DEX (distributed exchange).
🚨 Update on the status of the RouteProcessor2 bug
🧵A summary below on: what happened, what the team is working on and what you can do.
!! ️ Also, beware of fake DMs of scammers reaching out to you. SUSHI TEAM/SUPPORT DOES NOT DM FIRST.
Talk to us @ https://t.co/cGda2UVpAh
—Sushi.com (@SushiSwap) April 10, 2023
SushiSwap released the latest report on the incident on the 10th. He said he is currently working on the following:
- Work to identify all addresses affected by the hack targeting ‘RouteProcessor2’
- Work by White Hat Hackers to Rescue Funds
- Developing a plan to return rescued funds to users
- Write post-mortem report
He added that contracts other than “RouterProcessor2” were unaffected and that Sushiswap remains liquid. Sushiswap is asking users to revoke approval if they have approved a malicious contract.
It also warns about fake account fraud associated with hacking confusion, and emphasizes to refer to information on official accounts.
Some quick notes on @SushiSwappost-exploit.
1. You can now safely swap/trade on Sushi.
2. We’ve removed the exploited contract.
3. Please confirm you’ve removed approvals for the exploited RouteProcessor2 contract here: https://t.co/8BKQ2FSF0f
—Jared Gray (@jaredgrey) April 9, 2023
Jared Gray also reported the latest situation on the 10th. He said it is now safe to resume trading on SushiSwap. He continues by saying that the contract that was abused has been removed. He also explained that none of the liquidity pools were affected by the hack.