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Cross-Link Allbridge Hacker Attack Results in $570,000 Losses

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According to reports, PeckShield monitoring showed that the cross link Allbridge hacker attack resulted in losses of approximately $570000 (including 282889 BUSD and 290868 USDT).

Cross-Link Allbridge Hacker Attack Results in $570,000 Losses

According to reports, PeckShield monitoring showed that the cross link Allbridge hacker attack resulted in losses of approximately $570000 (including 282889 BUSD and 290868 USDT). The root cause seems to be that the swap price of the fund pool has been tampered with. Attackers act as both liquidity providers and traders, manipulating prices and then depleting the funds in the pool.

PeckShield: Cross bridge Allbridge hacker attack resulted in approximately $570000 in losses

Understanding the Fund Pool Swap Price Tampering that Led to the Attack

The cryptocurrency market is prone to hacks and other types of cyber attacks. In recent news, an attack on the cross link Allbridge fund pool resulted in losses of approximately $570000 which included 282889 BUSD and 290868 USDT. This article aims to provide a comprehensive understanding of the fund pool swap price tampering that led to this malicious attack.

What is Allbridge Fund Pool?

Allbridge is a decentralized exchange that allows users to trade various cryptocurrencies. It operates on the Ethereum network and provides a secure platform for swapping tokens. A fund pool is essentially the liquidity pool that is utilized by the Allbridge platform. Liquidity providers deposit funds into the pool, and traders can utilize these pools to trade cryptocurrencies.

The Cross-Link Allbridge Hacker Attack

According to reports from PeckShield monitoring, the root cause of the hacker attack on the cross link Allbridge fund pool was tampering with the swap price of the fund pool. The attackers acted as both liquidity providers and traders, manipulating prices and then depleting the funds in the pool.

How Fund Pool Swap Price Tampering Occurs

In this type of attack, the hackers create fake trading pairs with low liquidity, and then they perform a small trade between the fake pair to create a price reference. After that, the hackers used their tools to overwhelm the bots that run the fund pool arbitrage. This then causes the affected liquidity provider to provide orders at a wrong price to the pool, which then enables the attackers who are also sharing liquidity, to drain the pool of its assets.

Preventing Fund Pool Tampering

To prevent fund pool tampering, it is essential to monitor the swap price on any decentralized fund pool. Liquidity providers should also be vigilant and keep a close watch on their deposits. Any transaction that appears not to make sense must be scrutinized in detail before it is approved.

Conclusion

The Cross-link Allbridge hacker attack that resulted in huge financial losses is just one example of how vulnerable cryptocurrency exchanges can be to cyber attacks. Decentralized exchanges like Allbridge must invest in security mechanisms to ensure that users’ investments are fully secured. Vigilance and proper monitoring of transactions can also help prevent similar attacks.

FAQs

What was the root cause of the Cross-Link Allbridge Hacker Attack?

The root cause of the Cross-Link Allbridge hacker attack was tampering with the swap price of the fund pool. The attackers acted as both liquidity providers and traders, manipulating prices and then depleting the funds in the pool.

How does fund pool swap price tampering occur?

The attackers create fake trading pairs with low liquidity, perform a small trade between the fake pair to create a price reference, then use their tools to overwhelm the bots that run the fund pool arbitrage. This then causes the affected liquidity provider to provide orders at a wrong price to the pool, which then enables the attackers who are also sharing liquidity, to drain the pool of its assets.

How can fund pool tampering be prevented?

To prevent fund pool tampering, it is essential to monitor the swap price on any decentralized fund pool. Liquidity providers should also be vigilant and keep a close watch on their deposits. Any transaction that appears not to make sense must be scrutinized in detail before it is approved.

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