In the previous week, ChainSwap was targeted in an exploit. The project has an assessed damages value of $800,000. Ethereum tokens built on Binance Smart Chain were hacked, resulting in significant losses for crypto companies that had previously utilized ChainSwap to issue their tokens.
Once they were able to get control of the BSC contract, the attacker was able to acquire control of the projects’ BSC contracts. Directly to their address, the attacker then used BSC’s most popular decentralized exchange, PancakeSwap, to sell the newly generated tokens.
Chainswap’s $8 Million Exploit
An analysis of the assault was done by n30 an associate of Ethereum-based NFT company Wilder World, founded by YouTuber Jake Paul’s brother, Wilder. The attacker successfully stole 20,000,000 WILD—the native token of the Wilder World universe.
According to estimates, the most recent assault, which happened on July 10, cost $8 million.
While they investigated the hack, ChainSwap officials warned its customers not to buy any of the platform’s native cryptocurrency, ASAP. Just half an hour later, they sent another tweet, urging people to keep a close eye on everyone else and keep the LPs and holders safe.
9/ In a series of nine transactions starting at block 12701866 on Ethereum, the attacker sold a total of 1,978,844.84 $WILD for a total of $327,331.98 DAI.
— n3o (@real_n3o) July 11, 2021
In addition, they announced that they would be issuing compensation to the token holders that were negatively affected by the fork. Several projects have reportedly been impacted by the assault. More than 3 million of Umbrella Network’s coins were stolen because of decentralized oracle Umbrella Network.
$ASAP Token Price Crash
Additionally, the breach affected the Option Room user-governed forecast protocol. The attackers took almost $550,000 in ROOM tokens, according to a tweet they published on July 10.
Additional updates showed that the ChainSwap team attempted to filter out the hackers’ addresses by freezing the Binance Smart Chain (BSC) mapping token address. The platform had the following to say:
The Chainswap team has frozen the BSC mapping token address to filter out the hackers addresses.
Balances might temporarily show 0 until we are done filtering.
Smart contract is affected, not the wallets that interacted with Chainswap. Funds from individual wallets are safe
— ChainSwap ($ASAP) (@chain_swap) July 11, 2021
Data show that the price of ASAP has dropped due to the breach. The token plummeted in value from its steady level of $0.28 to $0.22 in the span of five minutes late on July 10th. For quite some time, it has fallen, culminating in a bottom of $0.18. At the time of publication, ASAP was valued at $0.20.