LeetSwap

WETH

<div class="cryptonews"> 
 <p class="is-style-lead">Decentralized exchange (DEX) LeetSwap, operating on Coinbase’s Base network, has temporarily halted <a rel="noopener noreferrer nofollow" title="trading" href="https://thebittimes.com/tag/trading.html">trading</a> due to <a rel="noopener noreferrer nofollow" title="concerns" href="https://thebittimes.com/tag/concerns.html">concerns</a> over a potential <a rel="noopener noreferrer nofollow" title="exploit" href="https://thebittimes.com/tag/exploit.html">exploit</a>.&nbsp;</p> 
 <p>According to an Aug. 1 tweet from LeetSwap, the exchange detected suspicious activity in some of its liquidity pools and decided to pause trading immediately to conduct an investigation. The DEX is currently collaborating with renowned on-chain security experts to recover the locked liquidity.</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">As our DEX is forked from Solidly, our factory had a security pause function.<br><br>We noticed that some pool liquidity might have been compromised and we temporarily stopped the trading to investigate.</p>— LeetSwap (@LeetSwap) August 1, 2023 
   </blockquote> 
  </div> 
 </figure> 
 <p>While LeetSwap did not share specific details, blockchain analysts have shed some light on how the <a rel="noopener noreferrer nofollow" title="exploit" href="https://thebittimes.com/tag/exploit.html">exploit</a> might have occurred.</p> 
 <p>According to Igor Igamberdiev, the head of research at algorithmic market maker Wintermute, the attacker likely utilized an exposed smart contract function to manipulate the price of a token. This manipulation would have enabled them to drain Wrapped Ethereum (WETH) from LeetSwap’s liquidity pools.</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">It was easy:<br><br>– swap a bit of WETH for X tokens (should have fees)<br>– call _transferFeesSupportingTaxTokens(address, uint256) to move token to a Fees contract<br>– call sync()<br>– swap X tokens for all WETH from the pool<br><br>Don't think that this function should be public<br><br>GG WP pic.twitter.com/a7vXvWf0HY</p>— Igor Igamberdiev (@FrankResearcher) August 1, 2023 
   </blockquote> 
  </div> 
 </figure> 
 <p>The attack reportedly allowed the attacker to steal approximately 342.5 ETH, equivalent to over $630,000.</p> 
 <p>Blockchain security firms, including PeckShield, BlockSec, and CertiK, have confirmed Igamberdiev’s theory and the extent of the exploited funds in separate statements on social media.</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">Our <a rel="noopener noreferrer nofollow" title="Category Analysis" href="https://thebittimes.com/analysis.html">Analysis</a> shows the root case is from the exposed LeetSwapV2Pair::_transferFeesSupportingTaxTokens() function, which is hardly forked from solidly. https://t.co/orupeZNt1B pic.twitter.com/MSYskyhMXU</p>— PeckShield Inc. (@peckshield) August 1, 2023 
   </blockquote> 
  </div> 
 </figure> 
 <p>Approximately an hour and a half after the initial announcement, LeetSwap provided an update, assuring users that they are actively collaborating with security experts to find a viable solution to recover the locked liquidity.</p> 
 <p>“If you did not lock your liquidity, you are free to remove it from the pools,” the decentralized exchange added.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> SEC did not ask Coinbase ‘at any point’ to delist assets, the exchange admits 
 </div> 
 <h2 class="wp-block-heading" id="strong-double-blow-on-leetswap-strong"><strong>Double blow on LeetSwap</strong></h2> 
 <p>It has been a challenging day for Base’s leading DEX, LeetSwap, as this security concern comes on the heels of another setback. The popular meme coin, Bald, experienced a sharp drop in value after its developer withdrew a staggering 6,800 ETH (approximately $12.5 million) from the token’s liquidity pool on LeetSwap.</p> 
 <p>At the time of writing, LEET, the native token of DEX LeetSwap, is trading at $14.92, having lost 18.4% in price over the last 24 hours, CoinGecko data shows.</p> 
 <figure class="wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex"> 
  <figure class="wp-block-image size-large"> 
   <img decoding="async" loading="lazy" width="1024" height="776" data-id="14182448" src="https://cdn.thebittimes.com/images/2023/08/02/cfebee01987fee13f3d39ffc4fa78c35.webp" alt="Biggest Base DEX LeetSwap pauses trading amid exploit concerns - 1" class="wp-image-14182448"> 
  </figure> 
 </figure> 
 <p>Coinbase’s Base network, which opened its mainnet for developers on July 13, aims to provide faster and more cost-effective cryptocurrency transactions while maintaining the robust security features of the Ethereum blockchain.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> BALD meme coin surges 40,000% in 48 hours and then plunges 
 </div> <span class="google-news-banner__label">Follow Us on Google News</span> 
</div>

Biggest Base DEX LeetSwap pauses trading amid exploit concerns

Table of Contents

TheBitTimes

Alte articole publicate pe 1 aug. 2023

Crypto market loses $486M in July, most since 2022: Report

Decentralizing DCA: This exhange offers gas-free dollar-cost averaging

Coinbase's Base Witnesses Memecoin Frenzy and Soaring Gains

Tron TRX Price Struggles With Bears, What To Expect? TCRV 120% Price Prediction For August

Cardano (ADA) Price Shows Resilience; Possible Upside Ahead

Drug gang used Coinbase to launder crypto from prison

Join our free newsletter for daily crypto updates!