Decentralized finance insurance project Cover Protocol suffered momentary loss when an unknown attacker struck more than 40 trillion Cover tokens. After successfully cashing in tokens worth about $ 5 million, the attacker unexpectedly returned ether tokens worth about $ 3.2 million before leaving a message for the Cover team.

Exploitation is no longer possible

Immediately after the attack, the value of the insurance protocol token plummeted by more than 94% to $ 34 at the time of writing. After the incident, tThe Cover team immediately recognized the attack, warning investors not to buy the token while the investigation was ongoing. The team also urged the attackers to return the rest of the stolen money.

In their statement on Dec. 28, the team will try to reassure investors that vulnerabilities exploited by attackers have been fixed. The team says:

The exploit is no longer possible. Please do not purchase Cover tokens, and remove your liquidity from the Cover /ETH pool on Sushiswap. Claim / No claim balancer pools are not affected.

Compensation controversy

Furthermore, the Cover team too announced a compensation plan based on the snapshot that “will be taken in block 11541218, one block for the first major misused coin.” Nevertheless, the compensation plan seems to have sparked controversy for the project, with some token holders now accusing the Cover team of dishonesty.

Commenting on Cover’s compensation plan, a Twitter user known as Phil states, for example:

You must take a snapshot from the moment you announced via Twitter that the Cover Protocol contract was being abused. Many people did not know what had happened! They thought it was just a big dip! Binance previously announced what happened … Unbelievable!

Another user Kyouraku Shunsui asks “whe is accused the investors of being late for the team. The user requests a change of ‘the snapshot time’. However, dDespite the complaints, the Cover team appears to be working as planned.

What do you think of the attack on Cover? Tell us what you think in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or invitation to an offer to buy or sell, or a recommendation or endorsement of products, services or companies. does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly responsible for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Source link