‘How I Stole $850 Million Dollars Online’
Hacker stole $ 3 million from Cover protocol and then returned everything
White hacker hacked Cover DeFi protocol and withdrawn $ 3 million from it
The cracker exchanged COVER tokens for ETH and returned the received amount to the developer
Cover Lost Over 96% of Its Value After Reporting the Hack
A strange incident happened with the Cover DeFi protocol. A platform focused on p2p insurance was robbed, and after a few hours all the money was returned
Updated on December 29, 08:00 UTC
Binance cryptocurrency exchange has suspended trading on all pairs involving COVER. Users can only withdraw funds.
On Monday, December 28, Cover’s DeFi protocol fell victim to a hacker attack for millions of dollars in COVER tokens. According to Twitter user @Luciano_vPEPO, an attacker exploited an infinite mining vulnerability on a reward contract.
$ COVER exploited:
tl; dr infinite minting bug on their incentives contract
stake > unstake + claim > re-stake > repeat https://t.co/EM33wPoJR7 pic.twitter.com/UxomHAdHrM
– Luciano (@Luciano_vPEPO) December 28, 2020
If he finds a bug, he can put COVER tokens into staking. and then pick them up, claim a reward and repeat all over again.
Hacking and hacker attacks are common in the cryptocurrency industry and especially in the decentralized finance segment (DeFiDecentralized Finance (DeFi) – this is financial services, built on blockchain technology, which offer users access to open, efficient and … More). By definition, the work of DeFi protocols is not controlled by anyone and depends only on the quality of the program code. Many projects did not pass security audits before launch and became easy targets for hackers.
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What happened today does not fit into the mold. The hacker returned all the stolen money. However, the market has already pronounced its verdict on the project: after the news of the hack appeared, the cost of the token fell by 96%.
Market capitalization of COVER at the moment dropped to $ 1 million. At the time of writing, the project has already partially recovered from lows to $ 33 million.
Anthony Sassano, an entrepreneur and cryptoinfluencer, drew attention to an Ethereum transaction indicating a $ 3 million return. According to Sassano, the hacker who hacked the Cover protocol sent the developers his proceeds to ETH from the sale of stolen tokens. He also added a message:
“Watch your good next time better”
Holy shit the @CoverProtocol exploiter just sent all of their ETH profits from selling COVER back to the deployer https://t.co/mjT32KXOUK
– Anthony Sassano | sassal.eth (@ sassal0x) December 28, 2020
In total, he returned 4 350 ETH.
What is Cover Protocol
Cover Protocol is a decentralized p2p insurance and risk coverage application powered by Ethereum smart contracts. In addition, the platform offers a decentralized marketplace where users offer and receive insurance without intermediaries..
The decentralized finance industry has seen explosive growth this year. The value of blocked assets in DeFi protocols has grown from $ 1 billion to $ 15 billion in less than a year. Capital inflows into the industry have not escaped the attention of hackers and other attackers who tried to snatch their share of the tasty pie.
Read about what happened to the DeFi industry in 2020 in our review.
Cover may be over, but insurance against risky smart contracts is a very useful way to use blockchain. But who will insure the insurer? If the Cover protocol had insured itself, maybe it could have avoided a sad fate.
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