In several previous articles on the Arab Bitcoin website, we warned of the need to be careful about cryptocurrencies listed for trading on the decentralized Uniswap platform.

Where anyone can create a digital currency and put it into circulation, then pull the rug out from under the legs of investors and take possession of their digital currencies.

Or sometimes the listed currencies are unaudited and up-to-date, which makes their smart contracts vulnerable to fraud and hacking.

Earlier yesterday, the WLEO contract was hacked, resulting in the theft of $42,000 worth.

The hacker stole Ethereum (ETH) from Uniswap by minting several WLEO coins for himself, and later exchanged them for Ethereum.

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stated Mr. Khalil Kazi, founder of the LEO Finance community, in his report on the hack:

From what I hear constantly, this has happened to many other currencies on Uniswap.

Where a crypto contract/currency is exposed, then someone takes advantage of it to mint an endless number of coins and steal users’ money.

WLEO is a digital currency that acts as an encapsulated version of the LEO coin operating on the “Hive” blockchain.

The price of WLEO is tied to the price of the LEO coin, but since WLEO runs on the Ethereum blockchain, it means that it can be used in smart contracts, and has access to the broader Ethereum ecosystem.

After the hack, the cryptocurrency WLEO suffered a 60% drop in its price and then rebounded to $0.146.

While the hack was taking place, many WLEO holders and users were quick to notice that wrong transactions had occurred, and responded by removing 50% of the liquidity within an hour.

After a few hours, more than 75% of the liquidity was removed, limiting the returns that the hacker could collect.

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since then, did The hacker converted his earnings into Ethereum and sent it to trade on Binance using anonymous accounts, making it almost impossible to trace the stolen funds.

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Kazi added in his statement:

Binance has been contacted but there may be nothing they can do because the hacker appears to have used unknown accounts.

It is still not clear how this hacker managed to carry out the theft.

According to Kazi, the flaw that was exploited does not appear to be related to Oracle technology, the latter which allows the blockchain to interact with the real world or data outside the blockchain.

Kazy explained:

We’ll post more details as we continue the investigation and narrow it down further.

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