Visor – a Uniswap-based protocol specializing in NFT smart vaults – was recently exploited by hackers to withdraw 8.8 million vVISR tokens. The Visor team seems to be tackling the problem, but the price of the token subsequently plummeted.
Hacked For Millions
Visor Finance called attention to the exploit over Twitter earlier today. Apparently, the hack targeted the vVISR staking contract. Flaws in the contract include a re-entry hack to double mint vVISR tokens, alongside another allowing the tokens to be freely and limitlessly minted.
The protocol indicated that no position or hypervisor was threatened by the exploit, and that the affected VISR stakes would be restored. Shortly thereafter, the team announced that they would implement a “token migration” based on the state of the protocol before mining. “Post-vVISR exploit transactions will not affect your refundable amount,” they said.
The exploit has dealt terrible damage to vVISR’s price. According to Coinmarketcap data, the token was hovering at $0.92 as of 9:30am EST this morning, before quickly collapsing to $0.03 before noon. Trading volume tripled within that timeframe after the hacker sold all of his tokens through Uniswap.
He also used Tornado Cash – an Ethereum-based non-custodial privacy protocol – to conceal his identity. Tornado was used by SquidGame Token crooks in October to escape with their stolen funds without leaving a trace.
This isn’t the first time Visor has experienced a major hack. Back in June, $500 million was stolen from the network – about 16% of its TVL at the time.
Hacking season challenge
Challenge hacks and scams have increased in crypto over the past year. On Monday, Bent Finance informed its users of a possible network “exploit” and is now suspected of having made a deliberate attempt to let off steam. The staking platform disabled reward requests, and data analytics firm Peckshield said the hacked transaction was led by the Bent Finance deployer.
The biggest Defi hack yet took place this August, when $600 million worth of various cryptos were stolen across multiple networks including Ethereum, Polygon, and Binance Smart Chain. This rivaled some of crypto’s greatest hacks in history in dollar-denominated terms.
