By Richard Hines
Decentralized vault solutions for liquidity tokens Team Finance has recorded a malware attack that ripped its system of $15.8 million worth of crypto tokens.
Protocol Is Now Safe From The Exploiter – Team Finance
The protocol operates a decentralized finance (Defi) pattern that assists various projects in setting locks on liquidity. This process helps to limit the likelihood of crypto rug-pulling risk -which entails figuratively withdrawing a rug from under an investor, that is withdrawing liquidity and causing investment or asset value plunge.
As reported by PeckShield, the hacker had focused on the liquidity token coins placed under the management of Team Finance, affecting various projects. Amongst all the projects impacted are CAW (A Hunters Dream which recorded the most impact, with the hacker taking out about $11.5 million equivalent of its token. The Dejitaru Tsuka project was also affected alongside Feg (Feed Every Gorilla) and the Kondux project).
Team Finance corroborated the reports about the hack, explaining that the hacker had taken advantage of its probed version two to version three transfer function
Peckshield further noted that Team Finance’s defective transfer function aided the hackers ability to influence the exact worth of the tokens during the migration process from preceding version to version three. The alteration of the liquidity token worth gave the hacker a larger proceeds after the transfer process from v2 to v3 was completed.
At the detection of the exploit, the protocol made moves to publish that it is halting all transaction activities on its platform until there is an assured fix. All remaining funds under the protocol’s management, which amounts to $129 million as estimated by DefiLlama, are safe from further dangers, Team Finance added.
Additional details about the exploit disclosed that the hacker utilized $2,700 (1.7 ether) worth of ether coin to introduce its moves. Currently, the exploiters address still reflects the earnings from the hack, with an additional 880 ETH and $6.43 million in DAI stable coin.
The protocol has suggested that the hacker communicates with them, with promises of being compensated in return. Such approach to recovering stolen funds have become regular in the digital space.
October 2022 has recorded series of exploits. Earlier this month, Mango Market was reported to have lost $114 million to hackers.