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Weekly Blockchain Security Watch Dec 26 to Jan 1

Validated Project

From 26 December 2022 to 1 January 2023, all security incidents that have occurred were all Security Hacks.

SECURITY HACKS:

1. BitKeeps Client Gets Hacked

On 26 Dec, the team behind BitKeep, a popular wallet claimed that some of its wallet’s downloan links were hijacked by hackers and the normal links were replaced by malware.

It was reported that a lot of BitKeep users suffered from this hack and crypto assets worth around US $3 million were exploited.

The attacker’s address was 0xC6f70B2bC123936B486Bc89110243108FF93B21e on the BNB chain.  

2. Hacker Attacks PECO and DFI

On 26 Dec, Amun, an index product provider claimed that two of this applications PECO and DFI deployed on Polygon were attacked.

The attacker was identified to be 0xf8b17Df4da32FAfDdA970aE1f76D2DbfF7091913 on Polygon. The attacker exploited a vulnerability to take full control of the “relalance” manager, mint 80 billion tokens and dump all these tokens on all available DEXs. The hacker repeated this attack on the DFI token as well.

Right after the Amun team detected this incident, the team promptly rebalanced the contract manager such that it was controlled by the company’s multi-sigs.

The team would compensate all the affected token holders for their loss and will announce a repayment schedule soon.

After this incident happened, PECO’s price crashed to near zero.

Crypto assets worth around US $300,000 were exploited in this incident.

3. Hacker Attacks BTC.com

On 26 Dec, BIT Mining Limited announced that its child company BTC.com was attacked on December 3 and some crypto assets were exploited.

At the time of writing BTC.com had been back to work. BIT Mining Limited had reported this case to a local police office in Shenzhen, CHINA. This case had been under investigation. The company would do every effort to restore the exploited assets.

Crypto assets worth around US $700,000 were exploited in this incident.

4. Hacker Attacks Jaypeggerz

On 29 Dec, a hacker attacked Jaypeggerz, a dApp deployed on Ethereum.

The root cause was that the JAY contract allowed users to pass any ERC-21 token to the buyJay function. The hacker exploited this vulnerability to re-enter the JAY contract.

Basically the hacker flash-loaned 72.5 ETHs, bought JAYs with 22 ETHs and then called the buyJay function by passing a fake ERC-721 token with the remaining 50.5 ETHs. With this fake ERC-721 token, the hacker called the sell function to re-enter the JAY contract, manipulated the JAY’s price and sold all JAYs.

The hacker repeated this process and eventually exploited 15.32 ETHs worth around US $18,000 in this incident.

All exploited assets were cashed out via Tornado Cash.

Additional Details:

- Attacker’s Address: 0x0348d20b74ddc0ac9bfc3626e06d30bb6fac213b on Ethereum

- Attacking Contract: 0xed42cb11b9d03c807ed1ba9c2ed1d3ba5bf37340 on Ethereum

- Attacked Contract: 0xf2919d1d80aff2940274014bef534f7791906ff2 on Ethereum

- Hash Value of Attack Transaction: 

0xd4fafa1261f6e4f9c8543228a67caf9d02811e4ad3058a2714323964a8db61f6

5. Hacker Attacks Gummys Discord Server

On 29 Dec, a hacker attacked Gummys’ discord server. Gummys is a Web 3 steaming platform.

6. Hacker Attacks PartisiansNFTs Discord Server

On 30 Dec, a hacker attacked PartisiansNFT ’s discord server. PartisiansNFT is an NFT project.

7. Hacker Attacks Kenomis Discord Server

On 31 Dec, a hacker attacked Kenomi’s discord server. Kenomi is an NFT project.

8. Hacker Attacks Everybodys Discord Server

On 2 Jan, a hacker attacked Everybodys’ discord server. Everybodys is an NFT project on Ethereum.

CONCLUSION-

8 notable security incidents have occurred in the past week. It is worth noting that the BitKeep incident affected numerous wallet users.

A Reminder for Project Teams: Always test thoroughly. Do smart contract audits before deploying smart contracts on-chain.

A Reminder for Crypto Users: Be cautious about suspicious links, emails, websites, and projects launched by teams without established reputations. Particularly we suggest crypto investors should have a cold wallet and put most of their crypto assets in their cold wallets.

It is important for everyone in the crypto community to gain understanding and practice sufficient levels of cybersecurity.

To stay updated on notable security incidents in the world of Web3.0, subscribe to our newsletter: https://fairyproof.substack.com/For a better understanding of all things Web3.0: https://medium.com/@FairyproofT

Looking to strengthen the security of your project or looking for an audit? Contact us at

https://www.fairyproof.com/

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