Hackers stole $8.2 million worth of cryptocurrency from Visor Finance
DeFi project Visor Finance powered by Uniswap V3 has been hacked. The fraudster used a re-entry error to hack the protocol and withdraw $8.2 million worth of VISR tokens from the liquidity pool.
This error allows scammers to create any number of tokens. This is a common problem with Ethereum's DeFi protocols. The attacker is believed to have changed the owner of the contract to be able to generate an unlimited number of vVISR reward tokens.
According to Etherscan, the attacker has already exchanged most of the VISR tokens for ETH through the Uniswap decentralized exchange. However, due to the rapid fall in the value of the token, he received much less profit than he stole.
The project's token, which cost $0.93 before the hack, fell in price by 95%, and after the incident it began to cost $0.04. The total amount of profit after the completed exchange was $978.5 thousand (243 ETH). The attacker's wallet also contains 3.6 million VISR tokens and 0.475 ETH, which is estimated at $135,000.
🚨 Visor will be implementing a token migration based upon a snapshot before the exploit. Trades subsequent to the vVISR exploit will not effect your redeemable amount.— Visor Finance (@VisorFinance) December 21, 2021
The developers said they intend to pay compensation to the victims based on the picture taken before the break-in. Compensation will be paid by token migration. This is a commonly used countervailing strategy for burglary management.