The project’s team encouraged users to revoke permission to interact with the smart contract

senUSD stablecoin’s protocol loses $6 million in an exploit

29.02.2024 - 12:20

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2 min

What’s new? The Seneca protocol for issuing stablecoins has lost 1900 ETH worth $6 million in an exploit. The vulnerability resulted from a bug in the protocol’s smart contract approval mechanism. According to experts at blockchain audit company Blocksec, the cause was an “arbitrary call issue.” The project’s contracts lacked code that allowed the team to suspend them, so the developers urged Seneca users to revoke the approvals themselves.

Source: Twitter.com

What else is known? The vulnerability allowed an attacker to make unauthorized transfers of tokens from the project contract to external addresses under their control. Blocksec CTO Lei Wu clarified that the permissions to interact with the vulnerable contract allowed the hacker to withdraw user funds.

Later, the project’s team urged the hacker to return 80% of the funds to the Ethereum address, leaving himself a 20% reward. The company added that it is working with external cybersecurity companies and law enforcement agencies to track the funds and identify the recipients’ wallets. “We kindly request that you return the funds as soon as possible to avoid any further legal action,” Seneca concluded.

Source: Twitter.com

Seneca is a decentralized financial protocol that allows users to issue and borrow the senUSD stablecoin against other crypto assets.

senUSD collapsed by 11,27% to $0,846 after the incident. In turn, the rate of the native token SEN collapsed by 46% to $0,04414.

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