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.
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.
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