Key Insights:
- UvToken, the multi-chain crypto wallet, gets hacked
- Other DeFi protocols were also hacked
UvToken wallet is an asset management ecosystem for crypto storage and transactions.
According to the whitepaper, it offers a fully decentralized transaction method with no need to transfer your tokens out of your wallet.
UvToken wallet offers aggregated Decentralized Exchange (DEX) and supports tokens such as BTC, ETH, EOS, and BSC. The aggregated DEX helps to increase the depth and transaction pairs and enables users to conduct cross-platform transactions.
UvToken Wallet allows staking, interest-bearing, cloud mining, and cloud investment. It is the only coin-stock-linked project with roots and advanced wallet service provision.
The UvToken Wallet Hack
UvToken becomes the latest Multi chain crypto wallet to be attacked in October.
The attack saw a loss of about $1.4 million, with the hackers making away with 5,011 BNB tokens. They then proceeded to divert the stolen tokens into (sanctioned) mixer Tornado Cash.
According to Peckshield and Ancilia, blockchain security firms, the attack occurred on the BNB chain. UvToken allows users to stake native tokens into a specific contract, which was the targeted feature.
The attacker took advantage of UvToken’s staking contract’s failure. The attackers went ahead to authenticate input data and specifically targeted the loophole.
The report also shows that the contract may have contained a logic error and made it easy to compromise the protocol. The logic error enabled the attackers to make a malicious call and seize the staked funds.
In a tweet by UvToken, they admitted the attack and alluded to the compromised staking project.
Conclusion
October has been rough for Decentralized Finance (DeFi) protocols, with about 11 protocols hacked.
DeFi protocols such as Mango Markets, TempleDAO, Rabby, BitKeep, and Binance BNB chain (BSC Token hub) were attacked.
Mango Markets and BSC Token hub lost about $100 million and $114 million, with other protocols losing high sums.
UvToken Wallet has become the latest to be attacked, and experts have put the total lost funds to about $718 million.
While these attacks are getting frequent, blockchain developers are expected to find a lasting solution. If not, more and more people would lose faith in the security of digital assets.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
