A hacker stole $2.7M from the Solv bitcoin product platform
Cryptosecurity researchers exploited a flaw that allowed the hacker to mine the tokens before exchanging the freely obtained token for another one linked to Bitcoin.
One of the token vaults of Bitcoin-based decentralized financial platform Solv Protocol was hacked for $2.7 million and offered the attacker a 10% bonus to return the stolen funds.
Solv said on Thursday that less than 10 of its users were affected by the X post, but it covers the loss of 38.05 Solv Protocol BTC (SolvBTC), which is the symbol for Bitcoin (BTC).
The project added that it has taken steps to prevent a similar attack from happening again and is investigating the exploit with the companies Hypernative, SlowMist and CertiK.
Solv allows users to save Bitcoin to the Solv Protocol BTC, which can then be used to borrow, lend or share on other blockchains. The project has 24,226 bitcoins worth more than $1.7 billion and claims to be the largest on-chain Bitcoin reserve.
Solv did not confirm how the exploit occurred, but two crypto security researchers said it stemmed from a vulnerability in one of Solv's smart contracts that allowed the attacker to overgenerate the token used in the protocol.
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The attacker exploited the vulnerability 22 times.
Anonymous crypto researcher “Piro” described the exploit as a re-entry attack, where unsecured resources expose loopholes in smart contracts, a popular attack that has plagued several DeFi protocols for years.
Solve shared the Ethereum wallet address in the X-post to encourage the hacker to receive the 10% bonus.
However, the hacker has not yet sent a message on the chain, according to Ethereum block explorer EtherScan.
Magazine: Bitcoin is likely to face a hard fork with any attempt to tie up satoshi coins.
