Stablecoin Seneca Hack: 6.4 Million Dollars in Losses as a Result of the Attack

Crypto News – Seneca announced a 20% bounty for the exploiter who was able to access at least $6.4 million in digital assets using a flaw in the protocol’s smart contract’s approval procedure.

Stablecoin Seneca Hack: 6.4 Million Dollars in Losses as a Result of the Attack

The stablecoin protocol attack was brought to the attention of several blockchain security firms on February 28. Businesses such as CertiK alerted consumers about the vulnerability and advised them to remove their approvals from an Ethereum and Arbitrum address. Approximately 1,900 Ether, valued at approximately $6.4 million, were extracted from the exploit, contrary to the initial estimations of losses, which were set at $3 million.

According to security specialists at CertiK, the exploit was made possible by a critical “call” vulnerability in the smart contract of the protocol. The attacker was able to make external calls to any address because of this vulnerability. Furthermore, there was no coding in the project’s contracts that would have allowed the team to take a pause. Users are forced to revoke permissions as a result.

Seneca Team Offers Attacker 20% of Funds

According to the Seneca team, they are currently collaborating with experts to look at what transpired. A $1.2 million reward was also provided by the team for the return of the pilfered money. The Seneca team requested that the hacker restore 80% of the assets they had stolen to an Ethereum address, leaving them with 20%, in an on-chain message on February 29.

Acting promptly is crucial, so we kindly request that you return the funds as soon as possible to avoid any further legal action,

Seneca team