Visor – a Uniswap-based protocol specializing in NFT smart vaults – was recently exploited by hackers to withdraw 8.8 million vVISR tokens. The Visor team seems to be tackling the problem, but the price of the token subsequently plummeted.
Hacked for millions
Visor Finance drew attention to the feat of Twitter earlier today. Apparently the hack was targeting the vVISR staking contract. Flaws in the contract include a re-entry hack to double vVISR tokens, as well as one allowing tokens to be minted freely and without limit.
The protocol indicated that no position or hypervisor was threatened by the exploit, and that the affected VISR stakes would be restored. Shortly thereafter, the team announced that they would implement a “token migration” based on the state of the protocol before mining. “Post-vVISR exploit transactions will not affect your refundable amount,” they said.
The exploit caused terrible damage to the cost of vVISR. According to data from Coinmarketcap, the token was hovering at $ 0.92 by 9:30 a.m. EST this morning, before quickly collapsing to $ 0.03 by noon. Trade volume tripled during this period after the hacker sold all of his tokens through Uniswap.
He also used Tornado Cash – an Ethereum-based non-custodial privacy protocol – to conceal his identity. Tornado was used by SquidGame Token crooks in October to escape with their stolen funds without leaving a trace.
This is not the first time Visor has suffered a major hack. In June, $ 500 million was stolen from the network, or about 16% of its TVL at the time.
Hacking season challenge
Challenge hacks and scams have increased in crypto over the past year. On Monday, Bent Finance informed its users of a possible network “exploit” and is now suspected of having made a deliberate attempt to let off steam. The staking platform disabled reward requests, and data analytics firm Peckshield said the hacked transaction was led by the Bent Finance deployer.
The biggest Defi hack to date took place in August, when $ 600 million worth of various cryptos was stolen from multiple networks, including Ethereum, Polygon, and Binance Smart Chain. It rivaled some of the biggest hacks in crypto history in dollar-denominated terms.
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