ParaSwap Crypto Refunds: Addressing A Critical Smart Contract Flaw

ParaSwap, a decentralized finance aggregator, has initiated the process of returning cryptocurrency to its users following the resolution of a critical vulnerability in its recently deployed Augustus v6 smart contract last week.

On Mar 24, the team behind the DeFi platform announced that they had successfully returned all assets to the wallets that white hat hackers retrieved. Additionally, they have revoked permissions to AugustusV6

Source: ParaSwap

ParaSwap reports that 213 addresses have not yet revoked permissions to the flawed contract.

Revoking a smart contract typically entails deactivating or terminating its operations on a blockchain, thus preventing it from accessing users’ wallets and tokens.

Last week, ParaSwap disclosed a vulnerability in a recently deployed smart contract. Fortunately, swift action by white hat hackers averted a significant loss of assets from the platform.

In a separate update, the team announced the initiation of the investigative process by submitting a detailed report to the relevant authorities regarding the stolen funds.

ParaSwap is actively collaborating with blockchain analytics and security firms, including Chainalysis and TRM Labs, to identify hacker addresses and track the movement of the funds.

Urgent Action Against Hacker: ParaSwap Recovery Strategy

Furthermore, the team has initiated communication with the identified hacker addresses through on-chain messaging, urging the return of the stolen user funds.

If there is no response from the hacker by Mar 27, the team stated that they would consider it an act of appropriation with unlawful intent. In such a scenario, they will pursue all available criminal, legal, and administrative avenues to recover the funds.

Initially, the reported losses were minimal, with preliminary investigations suggesting that the hackers acquired only $24,000 before the vulnerability was uncovered.

ParaSwap found a problem with its brand-new Augustus v6 smart contract on Mar 20, just a few days after it started on Mar 18. The goal was to make swapping tokens easier and cheaper.

Once they found the issue, they stopped the application programming interface (API) and protected the money with the help of a white hat hack.

Related Reading | OKX Founder Xu Refutes Arrest Rumors Amid Cryptocurrency Regulatory Landscape

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

Comments (No)

Leave a Reply