O Unibot, a cryptocurrency trading bot running on Telegram, suffered a hack that resulted in the loss of $640,000 in user funds. The bot is used to make quick trades on the decentralized exchange Uniswap.
The first hack alert was released by PeckShield, a security company that noticed the suspicious movement of approximately $580,000 worth of cryptocurrencies in the early hours of this Tuesday (31).
Minutes later, Scopescan, a security team focused on on-chain data, confirmed the exploit, noting that the hacker transferred cryptocurrencies using decentralized exchanges. Losses exceeded $600,000 within about an hour of exploration.
“Review and withdraw contract approvals [da Unibot], move your money to a new wallet as soon as possible. – said Scopescan.
Hi @TeamUnibot you might want to take a look: https://t.co/XdBkIWXw8x
—PeckShield Inc. (@peckshield) October 31, 2023
“Your wallet is safe,” Unibot says after confirming the $640,000 loss
This morning Unibot confirmed the hack and stated so “users’ keys and wallets are safe”in addition to promising that all affected funds will be compensated.
“Any money lost due to the bug in our new router will be compensated. Your keys and wallet are safe. We will release a detailed response once the investigation is completed.”
“We observed a token approval exploit on our new router and have paused our router to resolve the issue”the company said in a separate post on X.
We encountered a token approval exploit from our new router and paused our router to resolve the issue.
Any money lost due to the bug on our new router will be compensated. Your keys and wallet are safe.
We will release a detailed response upon completion of the investigation.
— Unibot (@TeamUnibot) October 31, 2023
The “token endorsement exploit” cited by the company is a vulnerability in smart contract permissions that allows unauthorized access or movement of a user’s tokens beyond a targeted limit.
Current estimates indicate that approximately $640,000 (R$3.2 million) worth of cryptocurrencies have been stolen.
News of the project’s hack caused the price of the Unibot token to drop more than 35% to $37 at the time of writing, according to data from CoinMarketCap.
Now both Unibot researchers and security companies are investigating the matter. Scopescan advised users to revoke compromised contract approvals.
Meanwhile, the hacker behind the attack is converting the stolen coins into Ethereum in an attempt to hide the stolen funds.
Unibot has become popular alongside other cryptocurrency Telegram bots that have emerged in recent months. The bot allows users to buy and sell cryptocurrencies without having to leave the messaging app, making traders’ lives easier.
Going further, users can also copy strategies from other traders, which has motivated many users to look for such bots.
Nevertheless, the hack is yet another reminder of the importance of investors taking security and proactive measures to protect their digital assets.
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Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
