Cryptheory: NFT, Play-to-Earn, Crypto News

24/7 crypto news, cryptocurrency meaning, guides, learning, #cryptohelpschildren

ChainSwap Exploit Leads to Multi-Million Loss For DeFi Tokens

2 min read

Last night, crypto projects that had used ChainSwap to launch ETH tokens on Binance Smart Chain lost millions to an attacker whose address now holds about $4.4 million.

The attacker managed to take control of the projects’ BSC contracts by exploiting ChainSwap. The attacker minted tokens directly to their address, then sold them on BSC’s most popular decentralized exchange, PancakeSwap.

The attack was first spotted and analyzed by n30, a developer at Wilder World, an ETH-based NFT startup backed by YouTuber Jake Paul. The attacker managed to steal 20,000,000 WILD—Wilder World’s native token.

“Liquidity pulled temporarily, please do not buy $ASAP we are investigating the exploit,” ChainSwap tweeted at 9:30 pm UTC yesterday. ASAP, ChainSwap’s native token, is down 24% and currently trades for $0.22.

Other exploited tokens include Antimatter, Optionroom, Umbrellabank, Nord, Razor, Peri, Unido, Oro, Vortex, Blank, and Unifarm.

Some of these projects, such as Antimatter and Optionroom, have said that they will compensate token holders on a 1:1 basis. Others, such as Nord, are still working out a “path forward.”

ChainSwap has frozen its bridge between ETH and Binance Smart Chain, and said that all ASAP holders will be compensated.

In April, ChainSwap raised $3 million in a funding round led by Alameda Research and the OKEx OK Block Dream Fund.

Too soon

This is the second attack ChainSwap has suffered this month. On July 2, the platform incurred $800,000 in damages after an attacker exploited another vulnerability in its code.

ChainSwap worked with the police and OKEx to identify the attackers, and managed to negotiate the recovery of Corra and Rai tokens. An initial email with the attackers suggested the attackers return $1 million.

“Sorry for the trouble, you sound genuinely like great people but money is money,” the attackers of the earlier exploit told ChainSwap.


All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

Leave a Reply

Your email address will not be published.