Ethereum Classic 51% Attacks
Learn about how the multiple 51% attacks were carried out on Ethereum Classic on 2019.
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On October 2nd, 2022, Transit Finance lost $21 million after a vulnerability in their…
On October 2nd, 2022, Transit Finance lost $21 million after a vulnerability in their code-base allowed a hacker to drain the wallets of users who had approved the protocol's swap contract.
Transit Finance is a multi-chain DEX aggregator that chooses and combines popular DEXs from public chains to improve transaction depth and yields.
The vulnerability existed in the project's code, but the attacker specifically targeted users by exploiting a weakness in the transferFrom function. The Transit Swap protocol did not strictly validate the data sent in by the user during token exchange, resulting in an arbitrary external call that the hacker exploited to steal approved tokens from users.
Any tokens approved for trading on Transit Swap could be sent directly from the user's wallet to the address of the exploiter.
The hacker has returned over 83% of the stolen assets after the involvement of multiple security firms.
The project team continued to collect specific data from stolen users in order to develop a return plan for those affected by this incident.
Hiding contract code makes lengthy investigation practically impossible and impedes hackers' ability to find vulnerabilities before they are exploited. Each protocol must take the appropriate procedures to include all validated contracts into its operations.
Hacks, exploits, frauds, and smart contract vulnerabilities are all too common in the blockchain world, and a DeFi team's requirement to keep closed source code raises a lot of suspicion. Is this an insider job involving the use of privileged information against their users for yet another form of business marketing? We will let time decide on everything.
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