XCarnival Smart Protocol Exploited For 3.8M In A Cyber Attack
According to a tweet sent by XCarnival, all deposits and borrowing activities for a smart contract that was suspended have been halted. Their staff will promptly tell those affected about the current situation in as little time as possible.
According to Packshield, a blockchain investigator, the perpetrator of the crime used the Bored Ape Yacht Club collection’s previously withdrawn pledged NFT as security to steal the assets. XCarnival, a supplier of liquidity for the Ethereum ecosystem, was instrumental in the recovery of 1,467 ETH. It occurred after a day of being hacked, during which an attacker stole 3,087 ETH. The address of the hacker was: 0xb7CBB4d43F1e08327A90B32A8417688C9D0B800a.
Currently our smart contract has been suspended, all deposit and borrowing actions are temporarily not supported, please stay tuned, we will confirm the situation as soon as possible.
— XCarnival (@XCarnival_Lab) June 26, 2022
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According to PeckShield, the assault may have been responsible for the release of NFTs that are still being used as collateral currently. Peckshield provided both an explanation of the exploitative nature, as well as their discourse. While XCarnival was halting a portion of its services in preparation for the attack, the company informed its users about the information linked to the breach. The cyber attacker has been awarded 1,500 ETH as a reward from the protocol, which will free them from further legal action.
However, XCarnival has temporarily halted the execution of the smart contracts. As a direct consequence, all deposit and borrowing functions have been disabled until the nature of the fault inside the system can be determined.
A new update about the incident that resulted in the theft of 460 million AMP tokens and 2804 ETH has been provided by the team. The value comes in at around 34 million dollars. In this particular instance, the hacker made advantage of a flash loan. In smart contracts, reentrancy-based vulnerabilities are one of the most common types of security flaws.
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PeckShield is the security company for smart contracts that conducts the first study. It informed the cryptocurrency market that there is a possibility of a composability risk occurring between Compound-based lending protocols and ERC-777-like tokens. Your goal, while selling the tokens, should aim to sell the whole package.
You can see why the non-traditional financial asset loan market is such a new market by considering this. It helps address the problem of low liquidity in NFTs. By doing so, it serves to attract more individuals to engage in the NFT market at that time, which in turn helps to decrease the entry cost.
Despite the volatility seen in the cryptocurrency market, the NFT sector continues to show strong growth. Nevertheless, variations have very little impact on it. However, there are still areas of the NFT business that have been seeing consistent growth.
Simply on OpeaSea, we have already seen eight NFT projects that include more than 100,000 ETH. The following are the names of these projects: CryptoPunks, BAYC, Decentraland, MAYC, Art Blocks, SandBox, Clone X, and Azuki. It is estimated that the total transaction volume of the whole market is close to $10 billion. According to Carnival, the early research and analysis based on a variety of criteria indicate that the NFT market is currently quite tiny. Price discovery and liquidity are two main aspects that significantly influence the market. This is why the impact on the market occurs.
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When we reviewed all of the information on the transactions, we were aware that there had been a trade of more than $40 billion worth of these tokens in the preceding year. People have dabbled with a variety of subgenres, such as cyberpunk; music; paintings and other art collections; bills and bonds; and so on. In addition to that, they have dealt with gaming, social, and meta-universe issues with asset mapping tokens. When taken into consideration, they are among the most effective and fastest techniques for getting the Bitcoin and blockchain business recognized.
