Uniswap

Crystal

Read

Tornado

<p class="is-style-lead">Vow, a decentralized discount voucher issuer, recently suffered an exploit that put its native token on the cusp of a collapse.&nbsp;</p> 
<p>According to a CertiK report shared with crypto.news, Vow was exploited to $1.2 million immediately after the platform tested a rate setter function on Aug. 13.&nbsp;</p> 
<p>Per Vow’s X post, the testing took a total of 15 to 30 seconds from changing the rate setter to reverting it back to its normal setting. During the test, the report says, the amount of “vUSD received per VOW token was changed from 1 to 100.”</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Subject: Update on Recent Market Incident and Ongoing Efforts<br><br>Dear Community,<br><br>We want to clarify the recent incident that has occurred while our team was testing the USD rate setter function of the v$ contract in order to mint v$ for the new lending pool and oracle functions.…</p>— Vow (@Vowcurrency) <a href="https://twitter.com/Vowcurrency/status/1823407231658025300?ref_src=twsrc%5Etfw" target="_blank" rel="">August 13, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>While the team was testing the new rate for a short span of time, a bot acquired 20 million Vow (VOW) tokens, worth $6.6 million at the time of the exploit, and then swapped the tokens for Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>) on <a href="https://crypto.news/tag/uniswap/" target="_blank" rel="noreferrer noopener">Uniswap</a> V2 for a total of 452 ETH, worth $1.23 million.</p> 
<p> You might also like: <a href="https://crypto.news/accidental-6-8m-transfer-lands-crypto-com-user-in-prison/"> Accidental $6.8m transfer lands Crypto.com user in prison </a> </p> 
<p>Vow added that the team is working on a fix and increased the token’s burn rate to 50%. This will help VOW’s circulating supply drop to its normal level.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Update: MVD Notification of VSR burn rate change with immediate effect<br><br>As part of ongoing measures to mitigate the impact of the exploit noted earlier today, the ecosystem priority is to reduce discount vouchers in supply to the pre-exploit state.<br><br>For clarity <a href="https://twitter.com/search?q=%24VOW&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">$VOW</a> supply has…</p>— Vow (@Vowcurrency) <a href="https://twitter.com/Vowcurrency/status/1823499682225516708?ref_src=twsrc%5Etfw" target="_blank" rel="">August 13, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>The exploiter still holds the ETH received from Uniswap, according to Etherscan <a href="https://etherscan.io/address/0x48de6bf9e301946b0a32b053804c61dc5f00c0c3" target="_blank" rel="">data</a>.&nbsp;</p> 
<p>Unlike the majority of the hacks within the crypto ecosystem, the attacker didn’t deposit the funds into a newly-created wallet. On-chain data shows that the attacker address interacted with the popular cryptocurrency mixer, Tornado Cash, around four months ago on April 23.</p> 
<p>At this point, the VOW token is down by 80% in the past 24 hours and is trading at $0.06 at the time of writing. The asset’s market cap is currently sitting at $41 million.&nbsp;</p> 
<figure class="wp-block-image size-full">
 <picture loading="lazy" decoding="async" class="wp-image-14291381"> 
  <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/08/Screenshot-2024-08-14-114343.png.webp"> 
  <img loading="lazy" decoding="async" width="1022" height="633" src="https://crypto.news/app/uploads/2024/08/Screenshot-2024-08-14-114343.png" alt="CertiK: Vow suffered $1.2m exploit, token plunged 80% - 11"> 
 </picture> 
 <figcaption class="wp-element-caption">
  VOW price – Aug. 14 | Source: <a href="https://www.coingecko.com/en/coins/vow" target="_blank" rel="">CoinGecko</a>
 </figcaption>
</figure> 
<p>The fear around the hack triggered a 1,400% increase in VOW’s daily trading volume, taking it to the $12 million mark.</p> 
<p>According to a Crystal Intelligence report in June, the cryptocurrency ecosystem <a href="https://crypto.news/crypto-hacks-wiped-out-nearly-20b-from-industry-crystal-intelligence-estimates/" target="_blank" rel="noreferrer noopener">lost</a> roughly $20 billion to hackers and scammers since 2011. In the second quarter of 2024 alone, the industry fell victim to 72 incidents and <a href="https://crypto.news/crypto-industry-lost-572-7-million-to-hacks-and-scams-in-q2/" target="_blank" rel="noreferrer noopener">lost</a> $572.7 million to malicious actors.</p> 
<p> Read more: <a href="https://crypto.news/crypto-firm-cumberland-deployed-1b-tether-in-8-days/"> Crypto firm Cumberland deployed $1b Tether in 8 days </a> </p>

CertiK: Vow suffered $1.2m exploit, token plunged 80%

crypto.news

Other articles published on Aug 14, 2024

Weekly Article Recap: 8/05-8/09

Coinbase Teases cbBTC on Base Network, Potential Rival to Wrapped Bitcoin

XRP On The Rise: Wall Street's Increasing Altcoin Appetite

Partnership with FIO Protocol Brings Free Web3 Handles for CoinStats Users

ADA Price Faces Declining Activity

Crypto Trading 101: Basic Strategies and Tools

Join our free newsletter for daily crypto updates!