SushiSwap Suffers 3 Million USD in Losses

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Hacking leaks are becoming more prevalent too, with one token front-end company making USD 3 million in losses after hackers corrupted the system with malicious code.

Joseph Long, SushiSwap’s Chief Technology Officer (CTO), tweeted that the MISO token launchpad launched on the exchange was attacked. According to his words, this is a supply chain attack with an anonymous contractor who’s using the handle ‘AristoK3’ to inject malicious code into Miso’s frontend.

To be honest, I’m not sure, Delong said that they “have reason to believe” it’s the Twitter user ‘eratos 1122’ who says they are a “Blockchain/Web/Mobile Developer.” Cryptonews.com has contacted eratos 1122 but they didn’t reply.

The CTO has confirmed that ETH 864.8 was stolen, which is currently worth over USD 3.06m – the address reflects this – The transaction took place 16 hours before writing time

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Simply put, front-end refers to the way users interact with your website. A supply-chain attack is a deliberate attempt by someone to gather confidential data from a company through an outside partner or vendor. Software supply chain attacks can be successful allowing attackers to take over a project or its infrastructure, as they change it to their control, using malicious software.

According to Delong, who provided additional information of the attack, only one contract was exploited- the one for JayPegsAutoMart’s NFT sale. “The attacker inserted their own wallet address to replace the auction Wallet at the auction creation,” he explained, adding: “Effected auctions have all been patched.”

“We have contacted crypto exchanges FTX and Binance, but they have resisted on this time-sensitive matter.”

After Delong’s complaints, Binance replied that they are also investigating the incident and would like to clarify the situation with him directly.

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The number of attackers is not yet known, but the CTO claims that the attacker had worked on some projects as recently as this year and has approached many other projects as well. All of those who have been contacted are encouraged to check their websites for any potential exploits left behind.

Delong advised that the group will file a complaint to the FBI if they don’t get their funds back by noon today.

This is why it’s important to be aware of this type of attack and that these breaches occur in the blockchain industry, and not to become complacent with your security.

For a highly-ranked crypt trader, known as DegenSpartan, this incident has been ‘another grim reminder that we are frontier explorers and anything could happen to us and our money.’

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A study from Rari Capital found that this type of attack could take place and can be devastating. “first of many to come,” adding: “Every react.js site depends on literally hundreds of thousands of packages, each of which depends on a couple hundred at least. One malicious sub-sub-sub-package update and it’s over.”

t11s believes that there may already be ways to mitigate this attack type. That said, it seems that the developing world of crypto is being opened to more attack vectors, stressing the need for vigilance at each and every step. With how much is at stake if you fail, you want to make sure you stay absolutely safe.

Sushi’s share price is down 8% in the last 24 hours (at 9:11 UTC), but it’s up a whopping 28% for the whole week.

Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

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