vulnerabilities

Cardano experienced a temporary chain split due to old code vulnerabilities, and the CEO stated that the FBI has intervened in the investigation

According to Cointelegraph, the Cardano network experienced a temporary chain split due to a "format error" in a delegated transaction. This type of delegated transaction refers to transactions that delegate ADA to a staking pool, which, while valid at the protocol level, can lead to code failures that affect network functionality.According to an incident report released by the Cardano ecosystem organization Intersect, this "format error" transaction exploited an old code vulnerability in the underlying software library of the Cardano blockchain, causing nodes to have discrepancies in how they processed the transaction, ultimately resulting in a network split. The vulnerability was caused by an ADA staking pool operator named Homer J, who used AI-generated code to facilitate the transaction and has admitted responsibility for the network split.Staking pool operators were urged to download the latest version of the node software to fix the issue and to reintegrate the split chains into a single complete blockchain. This temporary split sparked debate within the Cardano community, with some arguing that Homer J's actions helped expose critical vulnerabilities, while others, including Cardano founder Charles Hoskinson, labeled it an attack on the Cardano network, prompting an investigation by the FBI.One user quipped, "No one noticed the network partition of Cardano because no one is using it."

Review of Balancer's historical security incidents, resulting in a loss of 21 million dollars due to flash loans, front-end hijacking, and cross-protocol vulnerabilities

The DeFi protocol Balancer is currently under attack, with losses exceeding $116.6 million across multiple chains, and the attack on Balancer is still ongoing.According to the on-chain AI analysis tool CoinBob, the historical security incidents of Balancer are as follows:June 2020 Flash Loan Attack: Attackers exploited a compatibility issue between the deflationary token (STA/STONK) and Balancer's smart contracts, repeatedly calling swapExactAmountIn to drain the liquidity pool, ultimately profiting $523,600.August 2023 V2 Pool Vulnerability: The Balancer V2 pool suffered multiple flash loan attacks due to a code vulnerability, with total losses reaching $2.1 million. The team urgently paused the affected pools and advised users to withdraw their funds, but some funds that were not withdrawn in time were still exploited.September 2023 Frontend Hijacking Attack: Hackers gained control of Balancer's frontend through BGP/DNS hijacking, tricking users into authorizing malicious contracts, resulting in a loss of $238,000. On-chain detective ZachXBT traced the funds to address 0x645710Af050E26bB96e295bdfB75B4a878088d7E.2023 Euler Incident Impact: Due to a vulnerability in Euler Finance, Balancer's bbeUSD pool suffered a loss of $11.9 million, accounting for 65% of the pool's TVL. The team took protective measures to limit liquidity withdrawals.2024 Velocore Attack Association: The Velocore vulnerability exploited Balancer-style CPMM pools, resulting in a loss of $6.8 million. Balancer's technical architecture was indirectly implicated due to cross-protocol integration.
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