Cover Protocol exploit just took an interesting turn as the exploiter has returned all the proceeds from the stolen funds around 4350 ETH back to the deployer with an important message that read,
Next time take care of your shit
The hacker behind the exploit seems to be a white hat trying to show the vulnerabilities of these new over-hyped defi protocols. The hacker first created an infinite amount of Cover protocol token using the infinite mining bug, then sold it for approx $3 million worth of ETH and burnt the rest of it, later also returned all the amount gained from the attack back to the deployer.
If you are not in DeFi what the fuck are you even doing? https://t.co/sySZscfvRu
— Qiao Wang (@QwQiao) December 28, 2020
The cover protocol was exploited just hours ago owing to an infinite minting bug in its contract, leading to millions worth of Cover Protocol token being stolen and later dumped via 1Inch DEX. As reported by Coingape, the COVER protocol was exploited and a near-infinite of COVER, tokens were minted. The price of the COVER token crashed by more than 70% and the trading of the COVER token was immediately suspended by prominent exchange Binance.
— Anthony Sassano | sassal.eth ???? (@sassal0x) December 28, 2020
The Cover Protocol also released their official statement on the hack claiming that they have deployed their team to look into the exploit and also patch the bug through which the exploiter managed to siphon off nearly $2 million in Cover Protocol token.
The official tweet from the Cover Protocol also claimed that the exploit is no longer possible suggesting they have fixed the bug that led to this mishap.
The team is still investigating the current incident. The exploit is no longer possible.
The exploit is no longer possible. Please do NOT buy $COVER tokens, and remove your liquidity from the COVER/ETH pool on sushiswap.
CLAIM/NOCLAIM balancer pools are unaffected
— Cover Protocol (@CoverProtocol) December 28, 2020
Cover Protocol Deployers Profited Around $1 Million From Hack
The COVER protocol hack would go down in crypto history for not just getting back the stolen funds within hours of the exploit, but also for netting a $1 million profit from a hack.
At the time of the exploit, the hackers managed to take out around $2 million worth of COVER protocol which were then liquidated in ETH. ETH is currently seeing a bullish burst in its price taking it above the key resistance of $700 for the first time since 2018. This resulted in a spike in the value of 4350 ETH liquidated by the hackers resulting in Cover Protocol benefiting from the hack.
The exploit also led to a massive 96% price crash of the Cover Protocol token which is currently on a freefall especially since the funds were returned.
Apart from the falling price, the network has also seen a massive spike in transaction fees making things worse for the Defi insurance protocol and quite ironic as well. It would be quite an uphill task for the platform to recover from the breach and gain back the trust of the community.
The entire DeFi world is scrambling to make sense of what the fuck is going on with Cover. Fees are up a lot. More than $3M returned pic.twitter.com/qzmoj4J20P
— Larry Cermak ???? (@lawmaster) December 28, 2020