Cryptocurrency Hackers Have Minted 40 Quintillion Tokens
The Defi project, called Cover Protocol, suffered perhaps irreversible wounds after the attack on December 28. The attack, which initially resulted in a loss of $ 2 million, eventually resulted in the printing of 40 kentilions of cover tokens. The price of COVER fell 15 times in a few hours.
Cover Protocol aims to install a new insurance system to solve the problem of trust in the world of decentralized finance (DeFi). Users of this platform can get insurance against DeFi projects such as year Finance. In this form, Cover Protocol tries to adapt the phenomenon of assurance in the traditional financial world to decentralized finance. But the government’s reputation has been dealt a heavy blow following today’s attack.
The number of attackers multiplied rapidly
One or more hackers detected a bug in the contract that the Cover Protocol uses for the incentive mechanism. The Hacker used this illegitimate authority he seized to “create tokens out of nothing.” The Hacker sold these tokens and made millions of dollars.
The attack did not end there. The Cover Protocol team couldn’t fix this bug in time. The number of hackers taking advantage of this deficit in the contract has multiplied rapidly. A social media user called Banteg said: “the cover developers are asleep at the moment, so they couldn’t fix the bug.”he made the comment. The Cover Protocol team has yet to release a statement 3 hours after the attack.
Hackers who took advantage of this bug were authorized to print an infinite amount of tokens. A hacker was found to have produced 40 quintillion pieces of COVER on his own.
Down from $ 700 to $ 20
These new tokens, which were recklessly printed, caused the COVER price to fall to the ground. The COVER token, which had been trading at $ 700 by midday, fell as much as $ 20 in a few hours. The price of the token varied from exchange to exchange.
One of the attackers managed to dispose of $ 3.2 million of the tokens it produced. After the Hacker did this, he decided to burn the other tokens he produced. So far, the total value of COVER tokens sold by hackers is believed to exceed $ 5 million.
Exchanges decide to stop trading
It was noticed that hackers transferred money to exchanges to sell these tokens that they produced. Cryptocurrency exchanges have decided to stop COVER transactions in order to avoid this. Binance has announced it will freeze cover parity.
What’s next for COVER?
As of December 28, 16:45, the Cover team had not issued an announcement about the attack. Larry Cermak of the Block team said, “stay away from cover. That’s gone now.”he warned people with his message. Peter McCormack, on the other hand, announced that the end of the Cover protocol had come with his” cOVER ” comment.
Hope for the Cover team is not completely lost. Grap, which can be introduced as the” White Hat hacker”.finance announced that it was returning millions of dollars from the contract due to the bug to cover. It is not known how the name, believed to have saved cover, returned the money.
Although the Cover Protocol team has not yet made a statement, it is believed that this attack only affected investors.