The coverage protocol suffers an infinite coin attack, the price tanks 97%

189
SHARES
1.5k
VIEWS
ADVERTISEMENT

Related articles


A suspected hacker has exploited the cover staking protocol and increased the token supply by printing over 40 trillion “coins”.

In a surprising step, however, the alleged attacker returned the money with the message: “Take care of your own shit next time.”

Cover Attacker Mints 40 trillion tokens. Source: Etherscan.io

In the first exploit, the attacker liquidated over 11,700 coins on the decentralized 1-inch exchange aggregator after inflating the token supply, according to data from Ethereum wallet researcher Nansen. In total, the villain actor has withdrawn more than $ 5 million from the project at press time.

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

“The Blacksmith Farming Contract was exploited to mint an infinite number of $ COVER tokens. We restricted coin access to the Farming Contract to stop the attacker. If you provide liquidity for $ COVER tokens (Uniswap or Sushiswap), remove them please him immediately. “”

According to the Cover Protocol team, the problem only affected token delivery with funds held in still secure “claim / noclaim” pools. The project is investigating the incident.

The attack caused a massive drop in the COVER token price, which fell more than 97% while generating negative comments from a cross section of the crypto community on social media. As early as November, Cover was one of the DeFi protocols that were merged with Yearn.Finance.

Monday’s incident turns the cover into the latest DeFi project to suffer a malicious exploit in a year marked by opportunistic profit attacks against numerous protocols.

As previously reported by Cointelegraph, the deluge of DeFi hacks over the course of the year is one of the biggest disappointments in the crypto space for 2020, as data manipulation is seen as easy to perform on many projects.