The ChainSwap Exploit Explained: A Detailed Overview and Next Steps

What is ChainSwap?

ChainSwap is a cross-chain bridging solution used by projects to swap tokens between Ethereum and Binance chain primarily. ChainSwap has been one of the leading bridging solutions in the crypto space, and a lot of projects have integrated their bridge for the interchain token swap.

How did the exploit happen?

On July 11, 2021, the cross-chain bridge project Chainswap’s smart contract got exploited. The hackers were able to identify and exploit a vulnerability in Chainswap’s platform smart contract through which they were able to steal crypto-assets valued at over $4 Million.

About the Attack

An investigation into the attack by the ChainSwap team found a bug in the cross-chain quota code. The on-chain swap bridge quota is automatically increased by the signature node, which is intended to be more decentralized without manual control. This logical flaw in code led to an exploit by allowing invalid addresses that weren’t whitelisted to increase the amount automatically.

Our next steps

Fortunately, TeraBlock’s contract or user wallets holding the TBC token were not directly affected by the exploit. We do, however, have a moral obligation to keep our community informed with the details of the incident and have apparent next steps to ensure the safety and security of user funds. We have devised a plan of action moving forward, and the main points are listed down below:

  • A snapshot of TBC tokens holders on the Ethereum chain will be taken, and a new TBC contract on the ETH chain will be deployed. Users wallets holding the TBC Token will be able to Swap their old TBC tokens to new TBC tokens on our website through the upcoming TeraBlockSwap.
  • TBC tokens holders who staked their tokens on UniFarm Cohort 12 (ETH) will be able to change their old TBC tokens to the new tokens at unstaking.
  • We have been working on developing our native token bridge. Due to this exploit, we will move much faster with developing and deploying our native bridge onto the TeraBlock platform.
  • TeraBlock will get the bridge contract thoroughly audited before deploying it onto our platform as a commitment to bringing safe and secure products for our users.

TeraBlock is the simplest solution to buy & easily manage crypto assets with the help of Machine Learning based trade automation. https://terablock.ai