Attackers Drain Millions From Cover Protocol, Token Holders Attack Compensation Plan

Decentralized finance insurance coverage project Quilt protocol in brief suffered losses when an unknown attacker minted over 40 quintillion Quilt tokens. Alternatively, after successfully cashing out tokens rate about $5 million, the attacker all straight away returned ether tokens valued at about $3.2 million earlier than leaving a message for the Quilt crew.

Exploit No Longer Which that you just would possibly also imagine

Straight away after the assault, the price of the insurance coverage protocol’s token plummeted by over 94% to $34 on the time of writing. After the incident, the Quilt crew straight acknowledged the assault and went on to warn merchants in opposition to taking a uncover about for the token whereas investigations had been underway. The crew additionally entreated the attackers to reach the comfort of the stolen funds.


Alternatively, in their observation on December 28, the crew tries to reassure merchants that the vulnerabilities exploited by attackers had been mounted. The crew says:

The exploit isn’t any longer any longer possible. Please cease no longer fill shut Quilt tokens, and decide away your liquidity from the Quilt/ETH pool on Sushiswap. Claim/No roar balancer pools are unaffected.

Compensation Controversy

Moreover, the Quilt crew additionally introduced a compensation idea in step with the snapshot that “would per chance be taken at block 11541218, one block earlier than the first main exploited mint.” Nonetheless, the compensation idea appears to be like to comprise sparked controversy for the project with some token holders now accusing the Quilt crew of being dishonest.

To illustrate, in a response to Quilt’s compensation idea, one Twitter person is known as Phil argues:

You have to produce a snapshot from the moment you introduced thru Twitter that the contract received exploited Quilt Protocol. Many participants didn’t know what took place! They conception it’s authorized a tall dip! Binance introduced earlier what took place… Incredible!

One other person Kyouraku Shunsui asks “why the merchants are blamed for being slack for the crew.” The person asks for a switch to “the snapshot time.” Alternatively, despite the complaints, the Quilt crew appears to be like to be proceeding as planned.

What are your suggestions on the assault on Quilt? Enlighten us what you suspect in the comments section below.

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