Over $21 Million Is Lost By Transit Swap As A Result Of An Abuse Of A Programming Defect

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Last Updated on October 2, 2022 by Bitfinsider

A hacker used an internal flaw on a swap contract to lose almost $21 million for Transit Swap, a multi-chain Decentralized Exchange (DEX) aggregator. Following the discovery, Transit Swap apologized to the users and started looking for the monies that had been taken.

Transit Swap apologized profusely after admitting that a fault in the code had let a hacker to escape with an estimated $21 million. Peckshield, a blockchain investigator, focused the attack on a compatibility problem or misguided faith in the swap contract.

Source: Twitter

Peckshield joined the search to find the hacker along with fellow investigators SlowMist, Bitrace, and TokenPocket. Transit Swap announced that “We now have a lot of valid information such as the hacker’s IP, email address, and associated on-chain addresses. We will try our best to track the hacker and try to communicate with the hacker and help everyone recover their losses.”

Investigative evidence suggested that the hacker may have made previous withdrawals from well-known exchanges. Transit Swap expressed gratitude for the community’s trust and understanding by promising to provide additional information when it is appropriate.

Hackers continue to refine their techniques for deceiving investors in response to the upgraded security measures put in place by cryptocurrency businesses.

Recently, a hacker stole 1,101 ETH, worth around $1.41 million at the time of writing, by using an arbitrage trading bot for Ethereum (ETH) to take advantage of a “bad code” flaw.

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