Transit Swap Bleeds $21M Loss amid Code Bug Exploit

UTC by Bhushan Akolkar · 2 min read
Transit Swap Bleeds $21M Loss amid Code Bug Exploit
Photo: Depositphotos

As per the investigation, hackers exploited an internal bug in the transit swap contract. Reportedly, the hackers have returned 70% of the funds to Transit Swap after some negotiations.

The crypto market continues to face the wrath of hackers despite the slowdown in investor participation. Multi-chain decentralized exchange aggregator Transit Swap has lost a staggering $21 million. This happened with the hacker managing to exploit an internal bug in the swap contracts. Soon as the news broke out, the company issued an apology to its users stating “We are deeply sorry”. Transit Swap also noted that a bug in the code allowed the hacker to take away a staggering $21 million.

PeckShield, the renowned blockchain investigator is also looking into the matter and narrowed it down to a misplaced trust or compatibility issue in the swap contract. Along with PeckShield, Transit Swap is working with investigators from SlowMist, Bitrace, and TokenPocket. In its detailed message, Transit Swap noted:

“We now have a lot of valid information such as the hacker’s IP, email address, and associated on-chain addresses. We will try our best to track the hacker and try to communicate with the hacker and help everyone recover their losses.”

As per the investigative data, the hacker may have made previous withdrawals from well-known exchanges. Transit Swap said that they will be sharing more details with the community going ahead. It also added: “Thank you for your understanding and trust.”

Hacker Returned 70% of Stolen Funds to Transit Swap

Soon as the hack happened, Transit Swap reached out to the hacker negotiating the return of funds. On Sunday, October 2, the cross-chain swapping platform also updated on the return of funds. It added:

“We are here to update the latest news about TransitFinance Hacking Event. With the joint efforts of all parties, the hacker has returned about 70% of the stolen assets to the following two addresses”.

These two addresses belong to the Ethereum blockchain and the BNB Smart Chain. Transit Swap says that it continues the negotiations with the hackers and would update the community in case of any further development.

If the hacker fails to return the rest of the stolen funds, users have asked Transit Swap to cover the remaining 30%. They stated that the exploit was the DEX’s fault and would not have happened otherwise. `

Exploits in the DeFi protocols have been getting common recently with hackers taking the advantage of faulty codes and bugs. As hackers get more skilled in breaching blockchain protocols, it raises the need for extensive security audits before deploying the code.

Cryptocurrency news, News, Technology News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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