This person then quickly contacted Arbitrum’s team, thereby fixing the above vulnerability and receiving a bug bounty on ImmuneFi.
Accordingly, this vulnerability could allow hackers to steal the entire amount of ETH loaded into the bridge between Ethereum Layer-1 and Layer-2 (here is the Arbitrum Nitro version).
This white hat hacker said that the initialize() function that helps users sign transactions and sends encryption requests to Sequencers (validation units) has encountered a few vulnerabilities. The first 2 storage spaces (positions 0 and 1) of this function are empty, which means that the hacker can impersonate the user and then send the authentication message to the Sequencer.
This initialization-related vulnerability previously appeared in Nomad’s smart contract. This vulnerability was quickly identified by the Arbitrum team and a 400 ETH reward was sent to the aforementioned white hat hacker.
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