Ethereum DEX Dodged A $350M DeFi Hack With Help Of White Hat Hackers

An Ethereum DEX dodged a $350 million DeFi hack with the help of white hat hackers as we are reading more about it in our latest ethereum news today.

The SushiSwap big BitDAO token sale could have ended badly but a researcher discovered an exploit before the attacker was able to and the Ethereum DEX dodged a DEFI hack bullet this time. The SushiSwap MISO token sale platform had an exploit that could have been used to steal $350 million worth of ETH but a crypto researcher from Paradigm said he discovered the exploit yesterday and worked with SushiSwap to neutralize the threat.

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A week after Poly Network suffered a $600 million attack, the crypto world could have been under major threat by another hack at the decentralized exchange Sushiswap. The EX managed to avoid the attack thanks to the help of white hat hackers. In a post published today, samczsun who is a research partner at Paradigm explained he started examining the smart contract code a day ago for the BitDAO token sale at the SushiSwap MISO platform and the sale went off without any issues, raising $365 million in the process. Little did they know that things could have ended badly. The researcher said he spotted some issues with the smart contracts on the platform and as he experimented, he revealed an exploit that could have led to all of the ETH in the token auction contract being drained by the attacker:

“My little vulnerability just got a lot bigger. I wasn’t dealing with a bug that would let you outbid other participants. I was looking at a 350 million dollar bug.”

According to the post, samczsun looped in on the Paradigm colleagues Georgios Konstantopoulos and Dan Robinson to check his hypothesis. They connected with the SushiSwap team to discuss solutions and after the discussion, Sushiswap and Immunefi representatives brought a decision: the BitDAO team holding the token sale will have to manually end the token auction and neutralize the threat. The SushiSwap team shared more information about the exploit and noted that no funds were lost and no user action is needed as a result. SushiSwap will have to pause the MISO Dutch auction format until the smart contract is updated.

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SushiSwap is one of the most popular exchanges out there with more than $444 million in trading volume over the past day. The users can earn rewards by placing Ethereum-based tokens into liquidity pools that are used to facilitate trades without the need to connect buyers with sellers. It started life in 2020 as a copycat of Uniswap but was different due to the use of the native governance token SUSHI which is an approach that Uniswap soon adopted itself. SushiSwap continued to diversify the DeFi feature offerings like the launch of the MISO token sale platform.

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Author: Stefan