Hacker Returns 70% Funds of Recent Transit Swap Exploit

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  • The hacker exploited a flaw in the cross-chain DEX’s code.
  • Hacker’s IP address, email address, and linked on-chain addresses were identified.

Yesterday, a hacker made off with $21 million from the decentralized exchange (DEX) Transit Swap. But this morning, he or she returned 70% of it. The hacker exploited a flaw in the cross-chain DEX’s code, which the firm discovered during an internal audit, as was reported yesterday.

Transit Swap tweeted:

“After a self-review by the Transit Finance team, it was confirmed that the incident was caused by a hacker attack due to a bug in the code. We are deeply sorry.”

Transit Swap is a component of a broader cryptocurrency initiative called Transit Finance. An NFT market is included in the project as well.

Team Effort Paid Off

According to Transit Swap, with the assistance of crypto security firms SlowMist, Bitrace, PeckShield, TokenPocket, and TransitFinance, they were able to identify the hacker’s IP address, email address, and linked on-chain addresses.

Tornado Cash, the cryptocurrency “tumbler” at the heart of a legal struggle involving cryptocurrency investors, Coinbase, and the U.S. Treasury, purportedly received 2,500 Binance Coin (BNB), or around $710,000 at today’s values, from the hacker.

The Transit Swap team revealed the incident in a Medium article, claiming the hacker had been making deposits and withdrawals from the LATOKEN cryptocurrency exchange, among others. The stolen monies will be returned, as previously announced by Transit Swap on Twitter.

The hack came just two weeks after $160 million was stolen from algorithmic market maker Wintermute, and it was part of a larger trend that saw $1.9 billion worth of hacks reported by crypto analysis firm Chainalysis from January to July. This was an increase of nearly 60% from the same period last year.

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Hackers Steal $21 Million From DeX Aggregator Transit Swap

An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.