NINE-figure hack on BNBChain caused a turmoil in crypto community🚨

HashingBits | Week- 40

In brief⚡

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Events Under the Spotlight💥

Cross-chain DEX Aggregator Transit Swap was Hacked

• Decentralized cross-chain exchange Transit Swap was hacked on Sunday and reported that some US $28.9 million worth of tokens were stolen.

• The hackers returned 65% of the stolen token value on Monday, amounting to about US $18.9 million.💰

Bitcoin DeFi Protocol Sovryn suffered $1.1 million Exploit

• Bitcoin-based decentralized finance protocol Sovryn suffered a major exploit on Tuesday, with a hacker draining $1.1 million from the protocol.

• The hacker exploited a legacy function to drain the protocol, using a price manipulation technique in one of the protocol’s lending pools.

Interim Exploit Update by Sovryn🚩

~$570M worth of Binance’s BNB token was hacked

• According to the blog post, hackers withdrew approximately $570 million worth of BNB tokens from BNB Chain on Friday.

• The company previously estimated that the total amount withdrawn would be in the range of $100 million to $110 million.

• After hackers stole around $570 million worth of Binance’s BNB token, the cryptocurrency exchange temporarily suspended its blockchain network.

The Root Cause of the hack lies in this line.⚠️

To fix this, the code should be updated from-

`if !bytes.Equal(derivedRoot, lpath.Right) ...`

to something like:

```

expectedHash := lpath.Left

if len(lpath.Left) == 0 {

expectedHash = lpath.Right

}

if !bytes.Equal(derivedRoot, expectedHash) ...

```

This will ensure that the hash stored in the inner node matches the hash calculated throughout the path. (If the path node has a "Left," that node's hash is combined with the hash of the other branch; otherwise, the "Right" is hashed.) - See💡

The bug, as also exploited in @samczsun's PoC, is that one can go to any node in the proof path and add a `Right` hash (that verifies a forged, planted subtree).

The code ignores this hash in the computation of the topmost root hash because the node already has a `Left` hash.

The identical problem, in which proof path nodes with both "Left" and "Right" are treated incorrectly or rejected, may occur elsewhere in the code.👾

This needs some thought.

After the ~$600 Million BNB Hack, Ethereum Experiences Rug Pull Attacks

• BNBHACKINU – a token created in a clear reference to both the recent BNB Chain hack and popular dog-themed memecoins – becomes the latest scam that perpetrators pulled off to steal crypto.

• A malicious actor created fake tokens after the initial hack on BNB.

• The address of the token deployer does not match that of the initial hacker of BNB Chain. 🚩

• However, the lead deployer variable in the contract does have the address matching the BNB hacker.

• Lorem highlights how the entire smart contract had a malicious code structure.

• Firstly, the malicious actor had a function that allowed him to create an arbitrary number of tokens.

• More importantly, three functions of the smart contract allowed the hacker to transfer any holder’s token back to another account without any permission.

• The hacker was able to rug out close to $100K worth of Ethereum.💰

• He then repeated the same tactics with a new token called HACKERSHIBA.

JUMPN Finance siphoned off ~$1.15M in a Rug Pull Scam

• JUMPN Finance $JST rugged with ~$1.15M.

• 2,100 $BNB sent to Tornado Cash; 2,058 $BNB sit at hacker's address.

• The scammer calls the 0xe156 contract’s 0x6b1d9018() function and withdraws the user assets and transfers to the scammer's address.

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Trending Blog of the Week🚀

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