MeterIO's Decentralized Protocol Was Profitably Manipulated For $4.3 Million

MeterIO's Decentralized Protocol Was Profitably Manipulated For $4.3 Million

2022-02-07 | Selina Mathew

MeterIO's Decentralized Protocol Was Profitably Manipulated For $4.3 Million

MeterIO, a further DeFi-related startup, was hijacked, resulting in a $4.3 million loss, which might be valued more by the time of writing owing to heightened instability in the cryptocurrency industry. 1 391 ETH, as well as 2.7 BTC, were stolen by hackers.

The hack's technological rationale

Meter closely resembles or is a fork of the ChainSwap cross-chain hub technology. The primary distinction provided by Meter developers is a modification in the ERC20 handler's deposit procedure. Because the wrapped Native token has been unwound, the update implies that the bridging token, which really is a wrapped Native token, would not be burnt or locked. The code thinks that the bridged token is a wrapped Native token, thus it must not be burnt or locked. The supposition would've performed successfully for just one of the payment options, however, it does not operate properly for another means of depositing monies in the contract at the WETH deposit address. The hacker became aware of the contract's inconvenient nature and transferred the required sum in calldata, gaining possession of cash that he or she ought not to have possessed.

Cross-chain bridges are in distress

Meter's story is indeed not the isolated one in the cross-chain sector, with one of the major Solana-Ethereum bridges experiencing a weakness that resulted in a $320 bitcoin loss. According to reports, the Wormhole's problems were caused by an underpinning flaw in Solana's kernel, which was rectified in version 1.9. However, because certain contracts were operating on earlier editions of the network, hackers were capable of exploiting the issue and embezzling users' cash, which was ultimately repaid in full by investors.

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