Cross-Chain DeFi Platform ChainSwap Suffers Massive Loss In An Exploit

As much as everyone would like to believe that the world of decentralized finance is only filled with unparalleled joy and profits, the dark side of DeFi must also be acknowledged. In addition to an abundance of scams and other illegal activities often taking place in the decentralized finance, blockchain, and crypto industry, cyber-attacks, and hacks have also become increasingly commonplace. It has gotten to the point where entire companies and large areas filled with populated cities have become crippled in the past, and we need to look no further than the Colonial Pipeline incident for proof of this.

Now, ChainSwap has also been exploited by a recent hack, and the cross-chain DeFi platform suffered a massive loss of $8 million as a result. A glaring vulnerability in the platform’s smart contract had been taken advantage of, and numerous tokens have hence been compromised.

Over ten tokens are now at risk

As per a recent announcement, ChainSwap is now asking its clientele not to purchase its native token, known as ASAP, as the current situation is delicate and needs to be thoroughly investigated. As of now, the platform states that the individual wallets and funds remain safe for the moment. However, withdrawal and send functions have been suspended until further notice.

What is even more alarming is that apart from ASAP, several other tokens have been compromised as well, and these include UniFarm (UFARM), Wilder Worlds (WILD), Blank (BLANK), Optionroom (ROOM), Antimatter (MATTER), Vortex (VTX), Unido (UDO), Peri (PERI), Razor (RAZOR), and Nord (NORD).

Furthermore, as a result of the hack, OroPocket (ORO), Optionroom and UniFarm were forced to remove all liquidity from both PancakeSwap and Uniswap, at least for now.

No more trust in ChainSwap

Additionally, Umbrella Network (UMB) made it known that it shall be purchasing its native tokens back, collectively worth $230,000 in total. It also stated that the community would be left to decide as to how the tokens shall be spent. Lastly, the project shall no longer be relying on ChainSwap for the purposes of token bridging.

In related news, Wilder World’s native token had collapsed by nearly 100% as a result of the attack. However, it managed to recover afterward.

ChainSwap had managed to generate $3 million back in April from NGC Ventures, Alameda Research, and various other investors. However, it will likely struggle to recover from the recent hack, and investors shall be hesitant to fully trust it now.

All trademarks, logos, and images displayed on this site belong to their respective owners and have been utilized under the Fair Use Act. The materials on this site should not be interpreted as financial advice. When we incorporate content from other sites, we ensure each author receives proper attribution by providing a link to the original content. This site might maintain financial affiliations with a selection of the brands and firms mentioned herein. As a result, we may receive compensation if our readers opt to click on these links within our content and subsequently register for the products or services on offer. However, we neither represent nor endorse these services, brands, or companies. Therefore, any disputes that may arise with the mentioned brands or companies need to be directly addressed with the respective parties involved. We urge our readers to exercise their own judgement when clicking on links within our content and ultimately signing up for any products or services. The responsibility lies solely with them. Please read our full disclaimer and terms of use policy here.

Leave a Reply

Your email address will not be published. Required fields are marked *