BNO’s Faulty Reward Mechanism Results in $500K Loss
BNO’s Faulty Reward Mechanism Results in $500K Loss
November 17, 2023
In Brief
Uwerx AI got exploited due to price manipulation.
FFIST lost $110K due to logic vulnerability.
EraLend suffered a reentrancy attack.
BNO suffered a $500K loss due to a faulty reward mechanism.
Hacks
Hacks Analysis
Uwerx | Amount Lost: $324K
On August 2, the Uwerx exploit on the Ethereum Mainnet resulted in a $324K loss due to a price manipulation vulnerability. The root cause of the exploit was that the attacker was able to burn the UWERX tokens, reducing the total supply and artificially increasing the token price. The attacker first borrowed 20,000 ETH through flash loans and swapped the funds for 5,053,637 UWERX tokens. The attacker then executed the private _transfer() function that burned 1% of the transfer amount and reduced the total UWERX token supply. The attacker then sold the UWERX tokens at an artificially inflated price and made a profit
On July 20, the FFIST exploit on the BNB chain resulted in a $110K loss due to a contract logic vulnerability. The private _airdrop() function in the vulnerable contract was being deployed to distribute FFIST tokens to randomized addresses. However, the randomness was guessable as it was calculated based on the last airdrop address, block number, 'from' and 'to' addresses. Exploiting this vulnerability, the attacker managed to receive FFIST token airdrops and make a profit
Exploit Contract (on BNB Chain): 0x80121da952a74c06adc1d7f85a237089b57af347
On July 25, the EraLend exploit on the zkSync resulted in a $2.76M loss due to a read-only reentrancy attack. The attacker first borrowed 14,080,109 USDC and 7,566 ETH through flash loans. These funds were then deposited in the SyncSwapVault vault. By calling the private _burn() function, the attacker reduced the token supply, but the reserve amount didn't update. Since borrowing depended on reserves, which weren't updated before the reentrancy call, the attacker borrowed more than they should have, resulting in a profit.
Exploit Contract (SyncSwap Vault on zkSync): 0x621425a1Ef6abE91058E9712575dcc4258F8d091
On July 18, the BNO exploit on the BNB chain caused a loss of $500K due to a faulty reward calculation mechanism. The exploit contract has an emergencyWithdraw() function, which allows users to instantly withdraw funds. Since this function permits users to withdraw funds immediately, it should have nullified rewards by creating a reward debt. However, the emergencyWithdraw() function sets the reward debt to zero, enabling users to withdraw funds while still collecting rewards.
Exploit Contract (on BNB Chain): 0xdca503449899d5649d32175a255a8835a03e4006
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Follow-up: Conduct a follow-up review to ensure that the remediation steps were effective and that the smart contract is now secure.
Follow-up: Conduct a follow-up review to ensure that the remediation steps were effective and that the smart contract is now secure.
In Brief
Remitano suffered a $2.7M loss due to a private key compromise.
GAMBL’s recommendation system was exploited.
DAppSocial lost $530K due to a logic vulnerability.
Rocketswap’s private keys were inadvertently deployed on the server.
Hacks
Hacks Analysis
Huobi | Amount Lost: $8M
On September 24th, the Huobi Global exploit on the Ethereum Mainnet resulted in a $8 million loss due to the compromise of private keys. The attacker executed the attack in a single transaction by sending 4,999 ETH to a malicious contract. The attacker then created a second malicious contract and transferred 1,001 ETH to this new contract. Huobi has since confirmed that they have identified the attacker and has extended an offer of a 5% white hat bounty reward if the funds are returned to the exchange.
