Uniswap Lost Over $4.7 Million to Attackers

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High-level phishing has occurred on Uniswap v3 protocol. The campaign which targeted the liquidity provider saw the hackers make away with Ethereum. The minimum worth of the assets as of the time of reporting was put at $4.7 million.

Uncertain Degree of Loss

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Uniswap community is saying the loss might be more. A security researcher at Metamask, Harry Danley, called attention to the attack. He announced on his Twitter page that over 73,000 addresses had been compromised.

Binance CEO, CZ, also announced on his Twitter page that at least $4.7 million worth of Ethereum was stolen. The community news across the market is that the loss might be more.

Another Twitter user, 0xSisphus, said another liquidity provider might have been attacked too. He puts the value of the attack at about $17.5 million worth of 16,140 ETH.

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The Inner Workings

Harry Danley said the hacks work by first sending a malicious token to users. The malicious token is called UniswapLP. It is made to look like one from the actual Uniswap v3: Positions NFT.

The UniswapLP token manipulates the form field of the blockchain transaction. Users who want to find out about their tokens will get directed to a website. The website pretends to let them exchange their new token for Uniswap token, UNI.

Each UNI is currently worth $5.34. The website then sends the user’s wallet address and browser detailers to the hacks. It is at the point the cryptocurrency drainage from their wallets happens.

A post on Reddit also gave more explanation on the nature of the attacks. It said the hackers have stolen NFTs, ERC20, as well as ETH from victims.

Not termed an Exploit

There was a shock wave in the market when CZ rang the alarm that there was a possible exploit. He called it a potential exploit involving Uniswap protocol built on the Ethereum blockchain.

CZ later clarified with an updated post after speaking with the team at Uniswap. They said the attack was a phishing attack and not an issue with the protocol itself.

The initial comment from CZ came at the same time as the UNI price drop. It dropped to a day’s low. The token’s price has recovered since then after the clarification.

UNI is still low by 11% in the last 24 hours. But importantly, it is 87.8% lower than its all-time high.    

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