The Dencun attack on SIR.trading exposed vulnerabilities in the Ethereum Dencun upgrade, disrupting DeFi and emptying SIR.trading's $355,000 TVL.
How the Hack Happened
TenArmorAlert and Decurity were the first to raise the alarm, warning users of the protocol's complete drainage. Xatarrer, the founder of SIR.trading, acknowledged the unfortunate event but promised to continue operations.
Why This Dencun Attack Is Significant
This is the first known transient storage exploit in Ethereum. The Dencun upgrade introduced a new gas-fee reduction functionality, facilitating the attack. The industry is still unfamiliar with this stage's transient storage mechanism.
Where Did the Funds Go?
TenArmorSecurity discovered that the hacker transferred the stolen funds to Railgun. This Ethereum-based privacy solution complicates tracking the stolen assets.
The Dencun attack serves as a crucial warning to crypto enthusiasts. Ethereum's Dencun update introduces new features but may pose unforeseen security risks, highlighting the need for extensive testing.
