Security Breaches in 1inch, Base Chain, and Haven Protocol: One Token Plummets

The cryptocurrency sector is facing another wave of security vulnerabilities, affecting prominent projects like 1inch, Base Chain, and Haven Protocol. As interest in cryptocurrencies grows, so does the risk of cyberattacks and exploits targeting their systems. Here are the latest developments:

1inch Suffers a Security Breach

On December 9, the 1inch team disclosed a significant security incident. According to their official blog, attackers fraudulently accessed the private key of the 1inch Labs Resolver smart contract owner. This breach allowed the attackers to alter contract settings and transfer funds from the Resolver. The 1inch team promptly acted to mitigate the issue and strengthen security protocols.

In their statement, 1inch reassured users:

“Our team swiftly revoked the compromised access and enhanced our security measures to prevent similar incidents in the future. Our non-custodial protocols ensured user funds remained safe, and the 1inch applications and infrastructure were unaffected and fully secure.”

The breach, initiated on Ethereum, involved malicious contracts that expanded to other chains. Despite the severity of the attack, the swift response by the 1inch team prevented further damages.

Exploit Targets Base Chain’s Rebalancer Contract

Meanwhile, CertiK’s warning system flagged an exploit on the Base Chain’s Rebalancer contract. Located at address 0x6a0b87d6b74f7d5c92722f6a11714dbeda9f3895, the exploit leveraged a reentrancy vulnerability to extract 133.7 ETH, valued at approximately $501,000.

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The root cause lies in the contract’s open() function, which allowed attackers to specify arbitrary pool.strategy addresses. During the burn function execution, the exploit enabled reentrancy, allowing the attacker to gain an additional 50% ETH. This incident highlights the critical importance of addressing reentrancy flaws in smart contract development.

Haven Protocol Faces Minting Exploit

Lastly, Haven Protocol, an algorithmic stablecoin platform, reported a security vulnerability allowing malicious actors to mint XHV tokens undetected. The issue stems from a flaw in the range proof verification process. Reports from exchanges indicate the number of XHV tokens surpassed 500 million, while on-chain data shows only 263 million tokens in circulation. The discrepancy likely stems from unauthorized minting through the exploit.

Haven Protocol’s team attributed the flaw to the code introduced in Haven 3.2, which is based on Monero. In response, they advised exchanges to halt all trading pairs involving XHV. The aftermath saw a nearly 50% drop in XHV’s price.

The Road Ahead for Security

The breaches in 1inch, Base Chain, and Haven Protocol underscore the evolving challenges in maintaining robust security for decentralized platforms. As projects continue to enhance their defenses, the incidents highlight the need for rigorous testing and proactive measures to safeguard user funds and maintain trust.

For readers of The Bit Journal, these events serve as a critical reminder of the risks inherent in the crypto space and the importance of security-first development practices.

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