Hacker walks out with $12 quintillion worth of COVER due to DeFi bug
- A hacker was able to mint an unlimited number of COVER tokens.
- Cover price is down by 80% since the exploit.
Although the Cover protocol itself remains safe, as it wasn’t exploited, it’s the token behind the project that was affected. According to the official announcement, the Blacksmith farming contract was exploited to min infinite COVER tokens. In order to stop the attacker, the team has restricted minting access to the contract.
The team is still investigating the current incident. The exploit is no longer possible.
— Cover Protocol (@CoverProtocol) December 28, 2020
The exploit is no longer possible. Please do NOT buy $COVER tokens, and remove your liquidity from the COVER/ETH pool on sushiswap.
CLAIM/NOCLAIM balancer pools are unaffected
Users were also asked to immediately stop providing liquidity for Cover on Uniswap or Sushiswap. If you are a user affected and want to withdraw from the restricted contract, you will need to access the contract through this Etherescan link https://etherscan.io/address/0xE0B94a7BB45dD905c79bB1992C9879f40F1CAeD5#writeContract using the emergencyWithdraw option.
As expected, Cover price plummeted from an average of $800 down to $50 in a matter of hours and will most likely continue to decline as more users realize the contract was breached.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
