In line with a recent report published by ‘The Block’, Ethereum-based synthetic assets issuance platform named ‘Synthetix’ has lost more than 37 Mln synthetic ETH ‘sETH’ in a recent oracle attack.
While the quantity of sETH in question is thought to be over 37 Mln’s, the worth of this losses in USD reportedly for now are still unknown due to its relative illiquidity on secondary markets.
Synthetix ‘permits‘ users to mint and trade synthetic currencies P2P on the Ethereum ‘blockchain‘. One such synthetic currency is ‘sETH’ token, that apparently ‘tracks‘ the price of ‘Ethereum‘ using an oracle-backed price feed.
Chief executive officer of Synthetix named ‘Kain Warwick’ supposedly commented within the official Discord channel for Synthetix, adding:
“There has been a recent incidence with the worth feed of sKRW, we are presently investigating the root cause, however throughout the time once the feed was returning the wrong values we believe an automated arb bot converted into sKRW and thereafter into sETH.”
Warwick reportedly believes the alleged ‘attack’ was performed automatically by an arbitrage bot and is seeking to contact the bot owner to correct the issues.
Within the meantime, Synthetix has reportedly halted all of its transactions, that can apparently reduce the overall losses over its smart contracts. Warwick has conjointly issued a bug bounty to resolve and stop this issue from occurring again within the mere future.
As ‘reported‘ earlier, white hat hackers claimed over 40 bug bounties as rewards over thirty days in March. The bug finders received a total sum of around $23,675 USD, about a 3rd of that came from the consensus algorithm & P2P networking protocol firm named ‘Tendermint’.