Cryptocurrency swapping platform ParaSwap has started returning recovered funds to users following a critical security issue in their recently launched smart contract.
ParaSwap announced on March 24th that they’ve successfully retrieved assets for users and revoked permissions for the affected smart contract, AugustusV6. This comes after a critical vulnerability was discovered last week.
Revoking a smart contract typically involves disabling its functionality on the blockchain network. This prevents the contract from accessing a user’s crypto wallet and tokens.
ParaSwap identified the security flaw in their new smart contract shortly after launch. Fortunately, white hat hackers (ethical hackers) intervened quickly, preventing a larger loss of user funds.
ParaSwap reported the incident to the relevant authorities and is actively working with blockchain security firms Chainalysis and TRM Labs. Their collaborative effort focuses on identifying the hacker’s digital addresses and tracking stolen funds.
ParaSwap has attempted communication with the identified hacker addresses through on-chain messaging, urging the return of stolen funds. If no response is received by March 27th, the platform will pursue legal and criminal avenues for asset recovery.
Initial reports indicate the theft was relatively small, with hackers only acquiring around $24,000 before the vulnerability was discovered.
The security issue arose in ParaSwap’s recently launched Augustus v6 smart contract, released on March 18th. This contract aimed to enhance token swaps and decrease transaction fees. However, just days after launch, the platform discovered the vulnerability and paused their application programming interface (API) to secure users’ funds through a white hat hack.
Read Also: Hospitality Worker Convicted in $2.5 Billion Bitcoin Money Laundering Case
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
Comments are closed.