ChainSwap, the cross-chain asset bridge, has confirmed a compensation plan for users after it suffered an $8 million loss in its second exploit suffered in July. The project will airdrop governance tokens to holders based on the balances before the hack.
This platform supports the Polygon, Ethereum, and Binance Smart Chain (BSC) networks. The hacker exploited a vulnerability on July 10 enabling them to steal over 20 different assets from the liquidity pools of partner exchanges.
The incident has affected the markets for many assets, with the tokens of Antimatter, Nord, Ora, and Razor among those stolen by the attacker. ChainSwap’s native token ASAP shortly lost around 99% of its value amid the incident. Another hack on July 2 saw a cybercriminal steal around $800,000.
On July 14, 2021, ChainSwap expanded upon its plan aiming to compensate the affected users via an airdrop that is based on their ASAP holdings before the hack, noting that the tokens held on the Huobi Eco Chain and BSC networks will be airdropped to the Ethereum mainnet.
ChainSwap said that 717,200 ASAP tokens that are worth about $150,000 were liquidated from its treasury and allocated to compensate the affected partner projects, in addition to the stablecoins from its ‘team fund.’
This project also said that it managed to withdraw liquidity providers’ funds from UniSwap and force a burning of all hacked ASAP from the hacker’s wallet after suspending its bridge. ChainSwap is now in talks with different auditing companies to get a ‘deep audit’ completed.
Extra bug bounty programs, code testing, and third-party auditing processes will get implemented for future software releases from the team.
NFT project Wilder World was among those that were seriously affected by the incident, with the attacker gaining the ability to mint up to 20 million of its native WILD tokens to their address. These tokens were quickly dumped in a single transaction worth $207,000 of Wrapped Binance Coin, with the transaction shortly wiping off over 99% of the token’s value.
6/ Following the minting process, the attacker proceeded to sell 20,000,000 $WILD in a single transaction on PCS in exchange for ~652.44 WBNB ($207,216.47 USD). This resulted in removing nearly all of the BNB liquidity from the $WILD/BNB PSC pool.
— n3o (@real_n3o) July 11, 2021
The criminal also stole nearly two million WILD from the ChainSwap bridge contract that was sold for around $327,000 over nine transactions. In April, ChainSwap closed a $3 million funding round that featured participation from some of the industry’s top venture firms like NGC Ventures, Alameda Research, and CMS Holdings.