Transit Swap: "We are sincerely sorry" for $21 million hack
"We are sincerely sorry," Transit Swap said while disclosing that a bug in the system allowed a hacker to steal an estimated $21 million.
This is a terrible setback for Transit Swap, and our thoughts go out to the users who lost money in this attack. We hope that the company is able to track down the stolen funds and bring the perpetrator to justice. In the meantime, we urge users to be extra vigilant when using any decentralized exchange, and to only trade with reputable platforms.
This is a developing story, but we have learned that Transit Swap, a popular cryptocurrency exchange, has suffered a major security breach. According to estimates, a hacker or hackers made off with approximately $21 million worth of digital currency. This is a devastating blow for the company and its users, and it highlights the risks that come with investing in and using digital currencies. While the exact details of the breach are still being investigated, it appears that a compatibility issue or misplaced trust in the swap contract may have allowed the hacker to gain access to the funds.
— Transit Swap | Transit Buy | NFT (@TransitFinance) October 2, 2022
As the cryptocurrency industry continues to grow and expand, so too do the number of attacks and scams that target investors and exchanges. In recent days, one such attack saw over $30 million worth of funds stolen from the Transit Swap exchange. Peckshield, along with other investigators, including SlowMist, Bitrace and TokenPocket, joined in on the pursuit to track down the hacker.
“We now have a lot of valid information such as the hacker's IP, email address, and associated on-chain addresses. We will try our best to track the hacker and try to communicate with the hacker and help everyone recover their losses.”
The flowchart below depicts the flow of the stolen assets, as shared by Peckshield. The company has been able to successfully track the stolen funds and is working on returning them to the rightful owners.
We can only hope that the hacker is caught and brought to justice soon. In the meantime, we must remain vigilant and hope that exchanges and other organizations take the necessary steps to protect themselves and their users. Thank you for your understanding and trust.
As of yet, Transit Swap has not responded to Cointelegraph's request for comment. This is likely due to the recent controversy surrounding the company. However, it is possible that they will release a statement soon.
As crypto businesses implement updated security measures, hackers continue to evolve their methods to dupe investors. This ongoing cycle highlights the importance of remaining vigilant when it comes to investing in cryptocurrencies. By staying informed and being cautious of potential scams, investors can help protect themselves from becoming victims of fraud.
#MEV A very profitable MEV bot, internally named as 0xbad, was somehow tricked/hacked with 1,101 ETH loss (~$1.45M) in the following tx: https://t.co/FxXSY8AyhX
— PeckShield Inc. (@peckshield) September 27, 2022
It's always disappointing to see news of hacking and exploitation, especially when it results in such a large loss of funds. In this case, it's estimated that over $1 million worth of Ethereum was taken due to a vulnerability in the code. This just goes to show that even the most popular and well-known cryptocurrencies are not immune to attack.
