SlowMist, a prominent blockchain security firm, has recently issued its security report for March. According to the company, the previous month witnessed nearly thirty-three security incidents across the Web3 sector, resulting in a loss of up to $139M. The factors responsible for this take into account several vulnerabilities.
SlowMist’s Latest Web3 Report Discloses $139M Loss in Web3 Security Failures in March
These vulnerabilities include account theft, leaks of private keys, flash loan exploits, insider malfeasance, and smart contract weaknesses. SlowMist’s latest blog post discussed this and pointed toward the exploit of WOOFi (a decentralized exchange). It added that the attackers utilized the company’s Smoothed Price Moving Mechanism algorithm to control WOOFi trade prices.
As per the blockchain security firm, the exploiters orchestrated the attack with the use of a flash loan array. As a part of this strategy, the exploiter manipulated the WOO token’s price because of low liquidity. Subsequently, it repaid the respective loans at a decreased price. Following that, the exploiter swiftly repeated this 3 times. Eventually, the attacker took away up to $8.75M following the repayment of the flash loans.
Another such incident deals with the DeFi trading forum Unizen which experienced a nearly $2.1M loss in USDT. Nonetheless, the further reports brought to the front that the platform recovered funds of nearly $185,000 worth. Another DeFi platform Mozaic went through such an attack on the 15th of March. It attributed the theft of approximately $2M to a developer.
4 Exploitations Result in Efficient Fund Recovery
The respective person reportedly got the private keys. In this case, the company reportedly froze ninety percent of the exploited funds on the exchange MEXC. SlowMist’s report asserted that 4 projects, including Unizen, Dolomite, Super Sushi Samurai, and Munchables conducted effective fund recovery of almost $68.46M.
