Ethereum

<h2 id="header-0">Overview</h2><p>The BNB Smart Chain (BSC) has recently been subjected to identical attacks reminiscent of those on Ethereum, primarily due to a vulnerability inherent in the Vyper programming language. This sequence of events parallels the recent exploit aimed at the Curve Finance <a href="https://blockchainreporter.net/defi/" rel="noopener noreferrer nofollow">decentralized finance (DeFi)</a> protocol.</p><h2 id="header-1">A Growing Trend</h2><p>Although Ethereum-based protocols traditionally experience a higher rate of exploitation activity, BlockSec reports indicate that <a href="https://www.bnbchain.org/en/smartChain" rel="noopener noreferrer nofollow">BNB Smart Chain</a> hasn’t been spared either. Blockchain security firm BlockSec disclosed on July 30 that copycat attackers managed to pilfer approximately $73,000 in cryptocurrencies from BSC, spread across three separate exploits.</p><p>In a related context, similar attacks aiming at <a href="https://blockchainreporter.net/glossary/liquidity/" rel="noopener noreferrer nofollow">liquidity</a> reserves on Curve Finance have resulted in cumulative losses of a staggering $41 million, as estimated by BlockSec.</p><h2 id="header-2">Origin of Vulnerability</h2><p>The source of the security vulnerability is traced back to defective reentrancy locks in the Vyper programming language versions 0.2.15, 0.2.16, and 0.3.0. These versions are employed by numerous DeFi liquidity pools.</p><p>Vyper, known for its widespread application in <a href="https://blockchainreporter.net/glossary/web-3-0/" rel="noopener noreferrer nofollow">Web3</a> projects, was specifically tailored for Ethereum Virtual Machines (EVMs). Given its broad utility, there’s a possibility that other protocols utilizing the compromised Vyper versions might be at risk too.</p><h2 id="header-3">On-Chain Hacker Confrontations</h2><p>The revelation of this exploit led to a digital cat-and-mouse chase, with white-hat and black-hat hackers pitted against each other <a href="https://blockchainreporter.net/glossary/on-chain/" rel="noopener noreferrer nofollow">on-chain</a>. These cyber skirmishes were characterized by mutual disruptions, either thwarting exploit attempts or working towards the recovery of misappropriated funds.</p><h2 id="header-4">White-Hat Intervention</h2><p>An apparent white-hat hacker, operating under the pseudonym “c0ffebabe.eth,” managed to secure a portion of the misappropriated funds for protection. This individual made a public call on July 30 through an on-chain message, urging the impacted protocols to reach out and facilitate fund returns.</p><p>As of now, records indicate the recovery and return of nearly 2,900 <a href="https://blockchainreporter.net/ethereum-price/" rel="noopener noreferrer nofollow">Ether</a> – valued over $5 million – to Curve in one particular transaction. Moreover, another noteworthy transaction observed c0ffebabe.eth transferring 1,000 ETH to what seems to be a fresh wallet, likely functioning as the aforementioned secure cold storage.</p>

BNB Smart Chain Faces Exploitation Due to Vyper Language Flaw

Table of Contents

BlockchainReporter

Other articles published on Jul 31, 2023

Sygnum Bank’s Crypto Portfolio: John Deaton Re-Examines The Top 3 Crypto Assets – BTC, ETH, and XRP

Bitcoin-Backed US Dollar to Alter the Money Market Forever

Introducing Shido Blockchain Explorer

‘Rich dad’ Kiyosaki disputes WSJ’s economic narrative, favors bitcoin

The Future of Digital Real Estate: A Deep Dive into the Minativerse

SEC Wanted Coinbase to Delist Shiba Inu (SHIB), Cardano (ADA), and Other Altcoins

Join our free newsletter for daily crypto updates!