An investor loses $140,000 worth of UNI tokens… Details here
The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles
Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles
Answer An investor loses $140,000 worth of UNI tokens… Details here
An investor lost $140,000 worth of UNI tokens.
As a reminder, UNI is a digital currency belonging to the decentralized trading platform “Uniswap”.
The loss of this investor comes after he deposited his money in a new decentralized financing project called “UniCats”, according to “Alex Manuskin”, a researcher at the cryptocurrency wallet “ZenGo”.
The reason for this big loss goes back to last weekend, when a user named “John Doe” found a new project in the field of “Yield Farming” called “UniCats” and decided to transfer some UNI coins to this new project’s liquidity pool.
If you’re not yet convinced that you shouldn’t agree to infinite tokens for some random smart contract/Dapp, here’s the story of how Jhon Doe lost $140,000 worth of UNI in his sleep.
1/
👇 pic.twitter.com/QltkevnzDY
Read:Bitcoin’s dominance is on the rise, and the eyes are heading to the $56,000 level
– Alex Manuskin (@amanusk_) October 5, 2020
According to researcher Manuskin, this user may have been thinking that he had found the next big project in the decentralized finance arena, which he speculated could do as the Year.finance project did, which went from zero to $40,000 in two months.
User John Doe traded his UNI coins for MEOW cryptocurrencies belonging to the “UniCats” project.
The project developer UniCats then withdraws all the UNI coins deposited into his project, having previously created a backdoor in the UniCats project smart contract that gives him the ability and control to withdraw the funds deposited into the liquidity pool.
Meaning thanks to this backdoor, the founder of the UniCats project was able to use the “setGovernance” call to withdraw investor “Joy Doe” coins.
Through two quick transactions, this investor lost 26,000 and 10,000 UNI coins – worth $94,000 and $38,000, respectively.
The stolen UNI coins were then exchanged for just over 416 ETH (about $147,000) on Uniswap.
According to the researcher, “Manuskin”, the digital currencies obtained by the developer of the UniCats project do not belong to this investor only, but he was preceded by many users who fell into the same mistake.
Read:The crypto market reacts to the Fed Chairman’s speech regarding inflation measures
Manuskin estimated that this developer had received more than $50,000 from other victims before Joy.
He added that this was the first time he had seen this type of attack intentionally use malicious code, despite a similar hack being used against the Bancor project a short time ago.
Manuskin explained that Bancor suffered from an exploit, not an intentional backdoor created by developers, and noted that the UniCats developer creates additional smart contracts for each new victim to cover its tracks.
The developer then transfers the stolen funds to the “Tornado Cash” cryptocurrency mixer, a method that makes it difficult for blockchain analytics companies to track the funds.
“Manuskin” explained to Source:
Smart contracts cannot be undone after approval, so investors must know what they are depositing their money and agree to exchange it.
Much of the problem is due to the fact that users are complicit in agreeing to unlimited amounts, as this is the norm in popular decentralized applications.
Each new contract catches some money, exchanges it on Uniswap, and passes it on to UniCat and its address. The stolen ETH is then transferred to Tweet embed in quantities of 100ETH before moving on to the next victim
Read:The President of El Salvador stated: The digital wallet “Chivo” now has more users than any Salvadoran bank
– Alex Manuskin (@amanusk_) October 5, 2020
What Manuskin referred to can be likened to traditional applications that take the rights to subscriptions on a monthly basis after the first approval from the user.
So careful reading, deep research, questioning and counseling are the only ways to survive projects like UniCats.
Read also:
Disclosure of a fraudulent decentralized finance project and the collusion of prominent names in the crypto market… Details here
Two days after launch… Decentralized Finance Project Disappears With $20 Million Investors’ Money
And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time