RocketSwap Labs is tackling a massive security breach on August 14, costing the company $865,000, or 471 Ether (ETH). The firm has since unveiled its emergency recovery plan to limit the damage.
The severity of the situation prompted RocketSwap Labs to implement an unconventional strategy: launching a new farm contract open-sourced on the blockchain. This move intends to give up the minting rights of RCKT tokens, meaning the company has less control over the token. Additionally, RocketSwap Labs made an audacious plea to the hackers to return the stolen assets.
The breach, executed via brute-force hacking, has significantly affected the protocol. The attacker exploited high-risk permissions in the proxy contract tied to the farm contract, which opened a vulnerability. This vulnerability allowed the hacker to access the server and illegally transfer farm assets. Consequently, the damage was so severe that the farm had to shut down.
Besides impacting RocketSwap Labs, the breach reverberated through the broader crypto community. PeckShield, a well-known blockchain security firm, reported that the stolen 471 ETH was moved from Base to Ethereum on August 14. Moreover, the hacker created an astonishing 90 trillion “Overcut” tokens and quickly sent them to Uniswap and 400 Ether.
RocketSwap Labs swiftly confirmed the validity of the hack at 11:06 UTC on the same day. Later, further insights came from PeckShield and CertiK, another leading blockchain security firm. Their combined analysis uncovered the intricate details of the breach and shed light on the hacker’s methods.
As RocketSwap Labs navigates this tumultuous period, the Base community envisions a future where a decentralized, autonomous organization owns the exchange. This forward-thinking approach embodies the concept of community-owned decentralization, offering a way to recover from the breach-induced chaos.
RocketSwap Labs’ bold response represents an attempt to regain stability and control within the decentralized finance ecosystem, amid a landscape of challenges and uncertainties. The crypto community is eagerly awaiting the next steps in this unfolding story, with hopes for innovation and resilience in the aftermath of the breach.