According to a recent announcement on the medium post, the SpankChain company revealed about its hack, that supposedly happened back on 6th Oct., was detected by SpankChain a day after, and was proclaimed today in a very post entitled [We Got Spanked: What we know till now].
Anonymous attackers managed to steal around 165.38 Ethereum [ETH], which were equivalent to $38,000 USD from the platform’s payment channel smart contract. In addition, this security breach caused the immobilization of $4,000 USD worth of the SpankChain’s internal token named ‘Booty’.
While most of lost or immobilized funds belong to SpankChain itself, the platform claimed that consumer reimbursements are the immediate priority. The firm would shortly repay $9,300 USD price of Ethereum and Booty coins directly to the users’ SpankPay accounts via ETH airdrop.
The SpankChain team has considerably halted its camservice Spank.Live in order to forestall users from depositing via the payment channels smart contract. The web reboot is expected to take place around 2 to 3 days so as to reset the payment channels smart contract, carry reimbursements, reset native token distribution, and eliminate the security breach.
The attack was associated with a ‘reentrancy bug’ just like the one that exploited The Decentralized Autonomous Organization [DAO]. The hacker reportedly created a malicious contract mimicking an ERC20 token, with a transfer function calling back to the payment channel smart contract multiple times in a very loop, extracting Ethereum on every occasion.
A smart contract may be a protocol that allows the precise behavior of a contract by applying the terms of the agreement into the code, eliminating the necessity for a 3rd party in-between.
While smart contracts are reportedly extremely troublesome to hack, they’re still a young technology, and may be vulnerable to bugs, which may successively be exploited by scammers.
The adult industry is progressively taking advantage of cryptocurrencies and blockchain technology, largely driven by the technology’s inherent obscurity, along with a variety of other advantages.