FEG Token Attack: How $1 Million Was Lost

user avatar

by Giorgi Kostiuk

2 years ago

Recently, an exploit affecting FEG tokens occurred, resulting in over $1 million stolen due to cross-chain message processing errors. Holders suffered a 99% loss.

Timeline of the Event

The FEG token exploit came after a suspicious attack on the 'SmartBridge' project. Attackers liquidated the stolen funds, leaving holders with 99% losses. The FEG token is a key component for the project's 'SmartDeFi' launchpads operating on multiple blockchain networks.

Details of the Vulnerability

According to CertiK's analysis, the exploit was linked to an error in cross-chain message relay contract logic. CertiK confirmed that the contract was deployed by an address tagged to the FEG team and was not related to Wormhole. This marks the third attack on the FEG project in recent years.

Community Reaction and Consequences

The DeFi community expressed concern following yet another breach. BlockSec discovered that the attacker exploited a vulnerability via SmartBridge's relayer feature. The attacks spanned several blockchains, including Ethereum, Base, and BNB Chain, causing over $1 million in damages.

The FEG token exploit significantly impacted holders and raised concerns within the DeFi community. It is expected that the situation will encourage projects to conduct more thorough security audits of their contracts.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Other news

Nethermind Transitions to Chainlink CCIP as Node Operator

chest

Nethermind has transitioned its crosschain node operations to Chainlink CCIP, ending its role in the LayerZero Decentralized Verifier Network.

user avatarKenji Takahashi

NAVI Prime's Curated Lending Markets: A Step Towards Enhanced Risk Management

chest

NAVI Prime introduces curated lending markets to enhance risk management in DeFi by isolating environments and customizing collateral rules.

user avatarMaria Fernandez

NAVI Protocol Launches NAVI Prime: A New Era in Decentralized Lending

chest

NAVI Protocol has launched NAVI Prime, a modular lending framework on the Sui blockchain that replaces shared liquidity pools with independently curated lending markets.

user avatarGustavo Mendoza

HINC Deployment Enhances Sui Network's Institutional Appeal

chest

The deployment of the Neuberger Securitize High Income Tokenized Fund (HINC) on the Sui network enhances its appeal to institutional investors and showcases its potential in the tokenized finance landscape.

user avatarMiguel Rodriguez

Neuberger Securitize Launches High Income Tokenized Fund (HINC)

chest

Securitize and Neuberger Berman have launched the Neuberger Securitize High Income Tokenized Fund, known as HINC, providing accredited investors with tokenized access to high-yield bonds and other credit products.

user avatarRajesh Kumar

Walmart's Stock Plummets After Earnings Report

chest

Walmart's stock fell over 9% after its fiscal second-quarter earnings report showed only a 2.6% increase in US comparable sales, raising investor concerns.

user avatarLuis Flores

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.