2024-03-01 07:00:00
The Bitcoin surpassed its previous all-time high by passing the $62,000 mark. While the entire ecosystem goes into euphoria, another group of users is rubbing their hands. Thus, with the rise in prices, more and more hackers are targeting cryptocurrency holders and protocols. The latest, Seneca recently lost $6 million via hack of its smart contract.
Hack Seneca: 6 million dollars gone
Seneca is a protocol hosted on Ethereum et decision and is at the origin of stablecoin senUSD. In practice, this stablecoin is said “over-collateralized”. Thus, it is based on Collateral Debt Position (CDP). This allows users to pledge cryptocurrencies and issue senUSD once morest those cryptocurrencies.
On February 28, the Seneca teams announcement to have discovered a bug in one of their contracts. During this announcement, Seneca invites users to revoke approvals on protocol contracts.
Seneca announces that it has been the target of a hack.
Unfortunately, this bug was exploited before being discovered, resulting in the loss of 6 million dollars in the protocol pools.
Seneca teams are now actively exploring the source of the flaw in order to correct it.
For their part, the teams of BlockSeca company specializing in the security of crypto protocols, are considering what the attacker took advantage of an “arbitrary call” problem. In other words, it allowed him to make unauthorized transfers from the project contract to an external address.
Negotiation and sequence of events
The day following the attack, Seneca teams undertook negotiations with the hacker. To do this, they have contacted via on-chain messages.
In this message, Seneca offers the hacker to return the stolen funds. However, they propose to keep 20% of the amount as bug bountyor 1.2 million dollars.
At the same time, Seneca reveals that it is actively working with companies specializing in security as well as law enforcement to find the stolen funds. Therefore, if the hacker does not return the funds, he will face potential legal action.
Following this message, the hacker began to disperse part of the funds to several addresses.
For its part, senUSD has moved away from its peg and is trading around $0.71, 29 cents below its normal price. The same goes for the SEN token which saw its price divided by 4 following the attack, going from $0.8 to $0.2.
About ten days ago, it was the FixedFloat protocol that was targeted. So, the decentralized exchange lost no less than 26 million dollars in a hack.
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