3 - 5 minute read
SushiSwap, a decentralized exchange (DEX), has reportedly lost 1,800 Ethereum (ETH) worth around $3.3 million following a hack. According to PeckShield, a blockchain security firm, the approval contracts used for trade routing in SushiSwap had an unknown bug that allowed a bad actor to swipe crypto from wallets that had connected to it. Although SushiSwap’s “head chef” or CEO Jared Grey acknowledged PeckShield’s post and urged anyone who interacted with the contract to revoke their wallets’ approvals using a decentralized application (DApp) that allows users to quickly revoke their permissions, it was not enough to prevent the attack.
Recovery efforts are underway
Despite the severity of the loss, SushiSwap’s CTO, Matthew Hilley, claims that there is currently no risk associated with using the Sushi protocol. He stated that the exposure to RouterProcessor2 had been removed from the front end, and all LPing/current swap activity is safe to do. Grey further confirmed that they have already recovered some of the stolen ETH and are working on securing a white hat recovery for the rest.
“We’ve secured a large portion of affected funds in a white hat security process. If you have performed a white hat recovery, please contact firstname.lastname@example.org for next steps. We’ve confirmed recovery of more than 300 ETH from CoffeeBabe of Sifu’s stolen funds. We’re in contact with Lido’s team regarding 700 more ETH,” said Grey.
Most traders were shocked by the attack, and SUSHI price saw a brief correction after the news broke out. However, the coin has bounced back since then and is currently trading at $1.11.
What does this mean for traders?
This attack on SushiSwap has left many traders wondering what it means for the asset in question. The exploit triggered a brief correction for SUSHI, and this volatility will undoubtedly affect the long-term price movements of the coin. It is critical to mention that SushiSwap is not the only decentralized exchange that has been hacked recently, as we have seen similar attacks on other platforms like Uniswap, PancakeSwap and many others.
This should serve as a wakeup call to traders to be vigilant and exercise extreme caution when interacting with decentralized finance (DeFi) protocols. This attack may seem like a small percentage of the total amount of money locked in DeFi, but it could have severe consequences for traders who are not careful.
After losing 1,800 ETH, SushiSwap is actively recovering the stolen funds, and the protocol is safe to use again. SUSHI traders, however, should remain mindful of the volatility that follows such attacks. It is crucial to stay updated on any developments in the DeFi space and take steps to keep your assets safe. As decentralized finance continues to grow, keeping a finger on the pulse of the market is more important than ever.
The SushiSwap hack serves as a reminder to traders that you can never be too careful in the DeFi space. Always stay updated on the latest developments and exercise caution when interacting with these protocols. Remember, only you are responsible for keeping your assets safe. Stay vigilant, stay informed and keep your assets protected.