- Seneca had offered a 20% bounty to the person or people responsible for this exploit.
- The hacker sent back around 1,537 ETH, which is equivalent to approximately $5.3 million.
An approval process issue in the Stablecoin protocol Seneca’s smart contract allowed an exploiter to access around $6.4 million in digital assets. Seneca has offered a 20% bounty to the person or people responsible for this exploit.
The stablecoin protocol vulnerability was reported by many blockchain security organizations on February 28. Businesses such as CertiK alerted users about the vulnerability and encouraged them to remove permissions from an Ethereum and Arbitrum address. Despite initial estimates of $3 million in losses, it was eventually discovered that more than 1,900 Ether, equivalent to around $6.4 million, had been stolen via the exploit.
The attack occurred because of a major “call” weakness in the protocol’s smart contract, according to security specialists at CertiK. According to CertiK’s fast response team chief Joe Green, an attacker might use this flaw to make external calls to any address.
Bounty Offer Accepted
According to Green, this problem included an attacker who could make random external calls and steal assets from addresses that had authorized the susceptible contracts.
According to Seneca, it is collaborating with experts to determine what transpired. There was a $1.2 million reward for information leading to the safe recovery of the stolen money. By sending an on-chain message on February 29th, Seneca requested that the hacker provide an Ethereum address with 80% of the stolen funds, while keeping 20% for themselves.
Within hours after Seneca’s communication, the hacker sent back around 1,537 ETH, which is equivalent to approximately $5.3 million, to the wallet address that Seneca had provided. The exploiter took Seneca up on their 20% reward offer and retained 300 ETH, which is almost $1 million. After that, the hacker sent the ETH to two separate wallets.
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