Defi-Hacking Season: Another protocol suffers from mining attacks, the original token price is reduced by 95%
Another defi protocol fell victim to a miner who destroyed the original token value and lost 95%.
Visor – a Uniswap-based protocol focused on NFT Smart Vaults – was recently exploited by hackers to withdraw 8.8 million vVISR tokens. The Visor team seems to be working on the problem, but the token price has plummeted since then.
Hackers target vVISR. Staking contract
Visor Finance drew attention to the mine attack last night. Apparently, the hacker was targeting the vVISR staking contract by doubling the minted vVISR tokens, along with another option that allows these tokens to be minted freely and indefinitely.
The protocol states that no site or custodian is at risk of being exploited and that the affected VISR generators will be restored. Shortly afterwards, the team announced that they would perform a “token migration” based on the pre-mining state of the protocol.
“Transactions made after vVISR mining do not affect your redeemable funds.”
The exploit did terrible damage to the VISR price. According to Coinmarketcap data, the token hovered at $ 0.92 last night (9:30 a.m. EST) at 9:30 p.m. EST before quickly falling to $ 0.03. The trading volume tripled during this period after the hacker sold all of his tokens through Uniswap.
Hackers also use Tornado Cash – an unattended security protocol based on Ethereum – to hide their identities. Tornado was used by SquidGame token scammers back in October to escape without a trace with the stolen money.
This isn’t the first time Visor has come across a major hack. In June, $ 500 million was stolen from the network – roughly 16% of its then TVL.
Defi. Hacking season
Defi-hacks and scams have been rampant in the crypto space over the past year. On Monday, Bent Finance announced that the network had been subjected to an exploit attack and is now suspected of pulling a carpet. The staking platform has disabled reward requests, and data analytics firm Peckshield says the hacked transaction was carried out by a Bent Finance implementer.
The biggest Defi hack happened in August when several 600 million US dollars worth of cryptocurrencies were stolen on multiple networks including Ethereum, Polygon and Binance Smart Chain. This is on par with some of the biggest crypto hacks in history in terms of dollars.
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