Bitcoin

The coverage log suffers an infinite coin attack and its token price drops 97%

A hacker attacked the Cover Protocol staking protocol and increased the token supply by printing more than 40 trillion “coins”.

In a surprising step, however The attacker returned the money with a note that read, “Next time, take care of your own shit.”

The cover hacker minted 40 trillion tokens. Source: Etherscan.io

In the first exploit The attacker liquidated more than 11,700 coins on the decentralized 1-inch exchange aggregator a after inflating the token offer based on data from the Ethereum Wallet Explorer Nansen. Total, The hacker was spending over $ 5 million on the project at press time.

The coverage log suffers an infinite coin attack and its token price drops 97%
The coverage log suffers an infinite coin attack and its token price drops 97%

The cover protocol addressed the incident in a message posted on its Discord group that included:

“Blacksmith’s agriculture contract was attacked to generate an infinite number of $ COVER tokens. We have restricted coin access to the agriculture contract to stop the attacker. If you provide liquidity for the $ COVER token (uniswap or sushiswap), remove it Him off now. “

According to the Cover Protocol team The problem only affected the delivery of tokens with funds held in still secure “Claim / No Claim” pools. The project is investigating the incident.

The attack caused a massive drop in the price of the COVER token, decreased by more than 97% and sparked negative comments from a representative sample of the crypto community on social media. In November, Cover was one of DeFi’s protocols to merge with Yearn.Finance.

Monday’s incident turned cover into The latest DeFi project to suffer a malicious exploit in a year plagued by for-profit attacks on numerous protocols.

As previously reported by Cointelegraph, DeFi’s year-round hack series is one of the biggest disappointments in the crypto space of 2020 Data manipulation is seen as easy in many projects.

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