Some Funds Stolen in SushiSwap Exploit Recovered, but Blackhat Hackers Have the Rest

Funds recovered by whitehat security teams to be returned to users while others have been lost to blackhat hackers

article-image

Subbotina Anna/Shutterstock modified by Blockworks

share

SushiSwap is now safe to use after attackers drained more than $3 million last weekend, the blockchain protocol said Wednesday. It is now preparing to return some of the stolen funds to affected users, though not all are expected to recoup their losses quickly. 

Exploiters found an approval bug in SushiSwap’s Route Processor 2 last weekend, taking roughly $3.3 million from the smart contract. 

The majority of addresses that approved SushiSwap’s problematic smart contract were on Arbitrum and Polygon. The contract had been deployed on Arbitrum a few weeks ago for testing.

As part of the exploit, funds got swept by whitehat security teams while some were lost to blackhat hackers, the SushiSwap team said in a tweet. Those who haven’t used SushiSwap in the past 10 days were likely not impacted. 

The company said that user funds in the whitehat contract are safe and will be claimable shortly through a Merkle Claim contract and website the protocol is building. 

SushiSwap users whose funds are not in the whitehat contract must contact the protocol and share the transaction ID and blockchain data for the lost funds.

Loading Tweet..

“Blackhat funds will take longer to process, as the team will have to manually verify the legitimacy against on-chain data that validates the claim and then pay it out accordingly,” SushiSwap tweeted. 

The SushiSwap hack came after the number of crypto attacks spiked during the year’s first quarter, according to a report by Web3 security platform Immunefi. 

Various DeFi protocols that have become victims to such exploits have been able to successfully recover some or all of their stolen funds in recent months.

Scammers often try to trick DeFi users into granting them access to their funds — a method services such as Revok.cash seek to combat. Blockchain security firm PeckShield had urged SushiSwap users who had approved the relevant smart contract to immediately revoke its approval.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg

Research

Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.

article-image

MicroStrategy discloses the purchase of 16,000 bitcoin throughout November

article-image

Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion

article-image

Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks

article-image

DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely

article-image

Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US

article-image

Binance does not hold the required licenses to advertise and serve customers in the Philippines, the country’s securities regulator said