The $3.3 hack is ‘weird’

April 11, 2023 admin Cryptocurrency News 0

Decentralized finance (DeFi) protocol SushiSwap recently suffered an exploit due to a smart contract bug, leading to over $3 million in losses. Members of the crypto community responded to the hack, with some thinking that there was something fishy about it. 

On April 9, security firms detected unusual activities in the DeFi platform’s smart contract aggregating trade liquidity. A few hours later, a $3.3 million exploit was reported. Jared Grey, the head developer of the decentralized exchange, asked its users to revoke the permissions they granted to the platform. The developer also said they could recover some of the funds through a “whitehat security process.”

Community member Adam Cochran tweeted that the hack is “weird.” According to Cochran, the router contract that was “used by almost no one” was instantly exploited after getting its initial transactions. Cochran also said it felt like somebody was “waiting to strike.”

Related: Sandwich trading bots lose bread and butter in $25M exploit

In addition, another community member called on SushiSwap to take steps to prevent such incidents in the future. They tweeted:

Meanwhile, Cardano community member Rick McCracken said these “Ethereum issues” make crypto look bad. While crypto hacks aren’t limited to Ethereum, a huge amount of losses recorded in the first quarter of 2023 happened within the Ethereum network. On April 7, blockchain security firm CertiK’s quarterly report highlighted that over $221 million were lost due to incidents within the blockchain. 

Despite the negatives, some continue to stay optimistic about the crypto industry. According to a Twitter user, the crypto space “still finds a way to stay on track” despite setbacks like the SushiSwap hack. According to the community member, crypto is still in its early stages and will become “unbeatable” soon.

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