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Scam Alert

Sentiment On Layer 2 Arbitrum Exploited With A Large Number Of Stolen Coins

April 5, 2023 - Around 2 mins mins to read

Key Points:

  • Sentiment, a protocol for non-collateralized lending, seems to have been compromised.
  • Arbiscan has designated the wallet that assaulted “Sentimentxyz Exploiter,” and the team has indicated that they are aware of a possible vulnerability with the protocol.
  • While the team has not offered an explanation, some community members have speculated that the project was hacked based on blockchain data.
Sentiment, a decentralized lending network that provides unsecured cryptocurrency borrowing and lending, has lost $500,000 in USD Coins (USDC), according to the initial investigation.
Sentiment On Layer 2 Arbitrum Exploited With A Large Number Of Stolen Coins

The assault occurred today and includes a series of transactions that drew cash from the Sentiment protocol on the Arbitrum layer 2 scaling solution.

Since Sentiment has not issued an explanation, some community members have speculated that the project was hacked based on blockchain data.

The hacker, according to blockchain data, takes advantage of a flaw in Synapse Bridge, a smart contract that links Sentiment to Arbitrum. The hacker was able to take USDC from the bridge several times without repaying the loan, resulting in a reentry attack.

Arbiscan has called the wallet used in the assault “Sentimentxyz Exploiter,” and the team has notified on Twitter that they are aware of a “possible vulnerability” with the protocol.

Pascal Marco Caversaccio, a developer, suggested that the episode was most likely the consequence of a reentry assault. This kind of attack requires an external contract to frequently contact a susceptible Sentiment contract before the latter’s status may be modified.

According to further analysis, the attacker may have obtained the protocol’s deployer key. The attacker started by deploying a contract to the Arbitrum network at the address shown below.

Sentiment has made efforts to determine the core cause of the incident and mitigate the risk of further losses. The team has contacted law enforcement and has collaborated with third-party auditors and security organizations. The attack raised questions about the security and reliability of Layer 2 solutions and their integration with other protocols.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

Arbitrum

sentiment

Sentimentxyz Exploiter

Synapse Bridge

USDC

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
Scam Alert

Sentiment On Layer 2 Arbitrum Exploited With A Large Number Of Stolen Coins

Key Points:

  • Sentiment, a protocol for non-collateralized lending, seems to have been compromised.
  • Arbiscan has designated the wallet that assaulted “Sentimentxyz Exploiter,” and the team has indicated that they are aware of a possible vulnerability with the protocol.
  • While the team has not offered an explanation, some community members have speculated that the project was hacked based on blockchain data.
Sentiment, a decentralized lending network that provides unsecured cryptocurrency borrowing and lending, has lost $500,000 in USD Coins (USDC), according to the initial investigation.
Sentiment On Layer 2 Arbitrum Exploited With A Large Number Of Stolen Coins

The assault occurred today and includes a series of transactions that drew cash from the Sentiment protocol on the Arbitrum layer 2 scaling solution.

Since Sentiment has not issued an explanation, some community members have speculated that the project was hacked based on blockchain data.

The hacker, according to blockchain data, takes advantage of a flaw in Synapse Bridge, a smart contract that links Sentiment to Arbitrum. The hacker was able to take USDC from the bridge several times without repaying the loan, resulting in a reentry attack.

Arbiscan has called the wallet used in the assault “Sentimentxyz Exploiter,” and the team has notified on Twitter that they are aware of a “possible vulnerability” with the protocol.

Pascal Marco Caversaccio, a developer, suggested that the episode was most likely the consequence of a reentry assault. This kind of attack requires an external contract to frequently contact a susceptible Sentiment contract before the latter’s status may be modified.

According to further analysis, the attacker may have obtained the protocol’s deployer key. The attacker started by deploying a contract to the Arbitrum network at the address shown below.

Sentiment has made efforts to determine the core cause of the incident and mitigate the risk of further losses. The team has contacted law enforcement and has collaborated with third-party auditors and security organizations. The attack raised questions about the security and reliability of Layer 2 solutions and their integration with other protocols.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News