Cover Protocol was attacked by a White hat hacker on Monday after which the firm announced that it plans to launch a new Cover Token.
Hacker claimed to have exploited a flaw in the system and minted 40 quintillion COVER tokens and later converted them to Ether and wBTC tokens.
New Cover Tokens After Minting Attack
After being attacked by a hacker on Monday morning, Cover Protocol seemed to announce some hasty damage control steps. A white-hat hacker claimed that he tricked the decentralized finance insurance protocol and minted a humongous amount of COVER Token, however, he returned the tokens to Cover.
Cover Protocol said that there are investigating the exploit yet the attacker has given back 4350 ETH tokens which he had cashed out by converting the hacked COVER tokens. They said that the hack is handled through a snapshot to the LP token holders.
There was much furore among the Cover Protocol community as the massive hack. The white-hat hacker was seemingly trying to expose the vulnerabilities in the Cover system and returned the stolen tokens with a special message. He left a message “next time take care of your shit”. The hacker created an infinite number of cover protocol tokens and later cashed out the stolen Cover token for more than #3million Ether tokens and destroyed the remaining.
Afterwards, he sent back all the amount and called out the Decentralized finance protocol for not being strong enough through a strong message. “If you are not in DeFi, what the f*** are you even doing?
The Cover protocol development team is investigating the issue and, meanwhile, asked the users not to buy or swap any Cover Tokens. The news is rife that the Cover team which just merged with the Yearn protocol is looking to introduce a new Cover Token after the minting attack. The stolen Cover protocol tokens were dumped through 1Inch centralized exchange. There was an immediate impact on the price of the Cover token as soon as the news of the hack broke out. The token price crashed massively by more than 70 percent, and some significant exchanges ceased the trading as well.
The information discussed by The Coin Magazine is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Do your due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright The Coin Magazine All rights reserved.