The decentralized exchange DODO got exploited for $3.8 million with a few V2 Crowdpools belonging to the decentralized exchange and the liquidity provider getting hacked so let’s read more in our latest crypto news today.
The hacks and the exploits on DeFi continue and the latest victim was the decentralized exchange DODO with the attack targeting a few V2 crowdpools that ended up stealing over $3.8 million. The decentralized finance sector is not a stranger to malicious attacks and exploits as the DEX and liquidity provider DODO joined the pool of victims. With the first complaints happening on Twitter, the project said that it has “temporarily disabled” the pool creation portal as a precaution while promising that it’s working with its partners to recover all of the lost funds.
PSA Regarding Recent Exploit on DODO
On March 8, Several DODO V2 Crowdpools were attacked. WSZO, WCRES, ETHA, and FUSI pools were impacted, while AC pool funds have been fully recovered.
Funds in all other pools, including all V1 pools and all non-Crowdpool V2 pools, are safe.
— DODO DEX (@BreederDodo) March 9, 2021
The DODO team explained that the attack happened on March 8 when the hackers exploited a few V2 crowdpool and these include WCRES, ETHA, WSZO, and FUSI. DODO managed to recover most funds in the AC pool while the other pools were safe. As far as the stolen funds go, the project said that about $3.8 million were stolen and $1.88 million is expected to be returned. The post reads that these attackers contacted the project and offered to send back the funds that were removed from the DODO pools with the exchange saying that its V2 Crowdpool had a bug that allowed the hackers to target them successfully.
The bad actor creates one counterfeit token and initializes the smart contract with it by first calling the init function, then calling the sync function, and setting the reserved variable. DODO found two individuals working on the exploit and noted that it is investigating that the issue with a few notable industry names like Binance Smart Chain team, PEckshield, 1inch Exchange, and SlowMist. Some other examples of Defi exploit we saw the crypto of the project plummeting in value and this was also the case with the PAID network once the PAID coin crashed by 80%. The situation with DODO is not that harmful because the exchange is a part of the Binance Launchpool and traded at $4.3 at the time when the news broke that the DEX was exploited.
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