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SushiSwap Team is Working on Recovering Funds After an Exploit of $3.3 Million Made by a Hacker Due to a Bug

SushiSwap Team is Working on Recovering Funds After an Exploit of $3.3 Million Made by a Hacker Due to a Bug

Decentralized finance (DeFi) protocol, SushiSwap, also know for having a cross chain swap feature, reportedly lost $3.3 million to hackers on April 19, due to a bug on its smart contract according to Blockchain security company Certik Alert.

It was gathered that only crypto users that traded on the DeFi exchange in the last four days were negatively affected. 

Both Certik Alert and Peckshield reported unusual activity about the approval function in Sushi’s Router Processor 2 contract, which is a smart contract that facilitates trade liquidity from multiple sources. 

However, DefiLlama anonymous developer 0xngmi, declared, “The hack only affected users who swapped in the protocol within the past four days.”

Meanwhile, Sushi’s head developer, Jared Grey, enjoined users to revoke permissions for all contracts on the protocol as the security teams are speedily working to mitigate the issue. 

Apparently, it was a tough weekend for the Sushi community as users scampered for the safety of their funds. Meanwhile, the Sushi team has not been finding it easy in recent times. 

On April 8, Grey and his counsel responded to the subpoena served to SushiSwap by the United States Securities and Exchange Commission (SEC), stating that no one related to Sushi has violated any U.S. federal security laws. 

SushiSwap Partly Recovers from Attack 

It is interesting to note that SushiSwap teams were able to recover a large portion of the funds following the bug attack. 

SushiSwap Partly Recovers from Attack 

Sushi’s head developer, Jared Grey, confirmed that most of the affected funds in a whitehat security process have been recovered, urging individuals who have engaged in a whitehat recovery to reach out.  

He further highlighted that 300 ETH were specifically recovered from CoffeeBabe of Sifu’s stolen funds, adding that the team is in contact with Lido’s team as regards the recovery process.

Recall that DeFi executives recently talked at the World of Web3 (WOW), on the importance of launching “Know Your Customer” (KYC), to abate hacking and money laundering. 

At this juncture, talks should be matched with actions. There is a compelling need to address increasing DeFi attacks for the sake of transparency and growth. 

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