The Crypto Roundup: 03 July 2023 | CryptoCompare.com

Malicious actors have manipulated the smart contract function of PolyNetwork’s bridge tool, minting billions of dollars in various tokens. Bridge tools leverage smart contracts to enable the exchange of tokens between different blockchains.

The exploit allowed the attackers to trick the PolyNetwork bridge into generating tokens on one network that didn’t exist. The attack resulted in the creation of 24 billion Binance USD (BUSD) and BNB tokens on the Metis blockchain, 999 trillion Shiba Inu (SHIB) tokens on the Heco blockchain, and a variety of tokens on multiple other networks, including Avalanche and Polygon

Consequently, the attackers’ wallet was, on paper, valued at over $42 billion immediately after the attack. A significant liquidity shortage stopped the attackers from turning their vast hoard of tokens into cash.

Metis developers verified that there was no “sell liquidity available” for the BNB and BUSD. Moreover, the improperly issued METIS tokens were secured on the PolyNetwork bridge by the developers.

Despite these obstacles, the assailants found liquidity for some of the illicitly created tokens. According to Lookonchain, an analytics firm, they successfully exchanged 94 billion SHIB tokens for 360 ETH, 495 million COOK for 16 ether, and 15 million RFuel for 27 ETH.

This was the second time PolyNetwork has been targeted by attackers. The protocol was exploited for $600 million back in August 2021 after the alleged leak of a private key that was used to sign a cross-chain message.

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• Source: https://www.cryptocompare.com/email-updates/daily/2023/jul/03/