The DeFi platform, PAID Network, has recently been exploited by a hacker via a vulnerability that permitted the attacker to create various PAID tokens worth millions of dollars.
At approximately 18:10 UTC on March 5, a token minting function permitted an unknown hacker to mint over 59.4 million PAID tokens, which at the time of the attack was worth $166 million.
Shortly, the hacker successfully sold the ill-gotten tokens on Uniswap. He successfully sold around $2.5 million PAID tokens for roughly 2000 ETH, which is equivalent to $3 million.
After the new tokens hit the market, the price of the PAID token decreased to 0.40 from $2.80. Nevertheless, the hacker’s wallet address still has over 56 million PAID tokens, worth around $24 million.
Critics within the PAID Network community have speculated that one of the founders may be responsible for the attack. The critics allege that only specific addresses may perform certain functions.
In an attempt to prevent additional damage, the PAID Network has pulled liquidity from the weak contract. Furthermore, the development team is planning to restore token balances by creating a new smart contract.
In a recent tweet, PAID network reveals that the company will provide a detailed analysis of the hack soon.
Speculations Regarding The Source Of The Attack
Critics within the PAID Network community have speculated that one of the founders may be responsible for the attack. The critics allege that only specific addresses may perform certain functions.
In an attempt to prevent additional damage, the PAID Network has pulled liquidity from the weak contract. Furthermore, the development team is planning to restore token balances by creating a new smart contract.
PAID network also reveals that the company will provide a detailed analysis of the hack soon.
UPDATE: On March 7, the PAID Network released a thorough post-mortem report related to the security incident.
