Transit Swap published a Tweet to share the news that a hacker had recently stolen $21 million from its network. Reportedly, the hacker exploited the bug issue on the Swap contract to steal funds. An investigation is underway to track the hacker and recover funds.
Nearly 70% of funds have returned to the system as efforts to recover the remaining 30% are still in place.
Multiple security teams have joined hands to track the hacker. The security teams involved in the investigation with Transit Swap are SlowMist, Peckshield, TokenPocket, and Bitrace.
Pecksheild has taken the lead and narrowed down the cause to compatibility issues or misplaced trust in the swap contract.
Transit Swap has issued an apology to its users, adding that it has obtained valid pieces of information like the email address, IP address, and on-chain addresses of the hacker. More details are awaited as the investigating teams attempt to solve the problem as soon as possible.
Transit Swap has assured its users that it will try communicating with the hacker and help everyone recover their lost funds.
The hacking incident came to light after the TransitFinance team concluded a self-review process. It has also been observed that the hacker had performed withdrawals from known exchanges before hacking their way into the network.
Users are adopting crypto, and, in response, crypto businesses are expanding to as many regions as possible. While it has brought a significant shift in how the finance industry is seen, much work remains to make the digital space safe for all the users involved.
Bad actors are not sparing a single second to evolve their methods of duping investors and traders in the crypto sphere. If anything, their methods are only getting sophisticated.
PeckShield shared an incident to shed more light on this comment. PeckShield published a Tweet informing that a hacker once used the ETH arbitrage trading bot and drained 1,101 ETH (almost $1.41 million at the time of drafting this article) by using the trading bot to exploit a bad code vulnerability.
Transit Swap last published an update 12 hours ago to share that all the investigating parties were communicating with the hacker through email and on-chain methods. Teams are also collecting data from users who have suffered from the attack to formulate a specific action plan.
Transit Swap is a multi-chain decentralized exchange aggregator that aims to offer better return and liquidity with all the chains present on a single Transit Swap.
Users benefit from the platform as they can execute cross-chain transactions easily and safely. Users also benefit as they do not have to go through the trouble of choosing through multi-chain transactions. Transit Swap combines the decentralized exchanges’ advantages to offer a better price and a deeper technical depth.