Cover Protocol: Share price falls 97 per cent due to hack

Cover Protocol: Share price falls 97 per cent due to hack

Cover, a peer-to-peer platform in the DeFi space, has been hacked.

A suspected hacker has duped the Cover staking protocol, catapulting the token offering into inflation by printing over 40 trillion „coins“.

Surprisingly, however, the alleged attacker returned the money with Bitcoin Union a message saying, „Next time, mind your own business.“
Cover hacker generates 40 quintillion tokens. Source: Etherscan.io

In the hack, the attacker initially liquidated over 11,700 coins on decentralised exchange aggregator 1inch after inflating the token supply according to data from Ethereum wallet explorer Nansen. In total, the hacker has stolen over US$5 million from the project as of press time.

Cover Protocol addressed the incident in a message on its Discord group, stating:

„The Blacksmith farming contract was hacked in order to use it to mint infinite $COVER tokens. We have restricted coin access to the farming contract to stop the attacker. If you offer liquidity for $COVER tokens (Uniswap or Sushiswap), please remove them immediately.“

According to the Cover Protocol team, the problem only affected the token offering. Money held in „claim/noclaim“ pools is still safe, it said. The project says it is investigating the incident.

The attack caused a massive drop in the COVER token price

It fell by more than 97 percent while earning negative comments from the crypto community. Back in November, Cover was one of the DeFi tokens that merged with Yearn.Finance.

Cover is the latest victim of opportunistic, profit-driven attacks against numerous protocols among DeFi projects in a malicious hack attack this year.

As Cointelegraph reported, the mass of DeFi hacks throughout the year is one of the biggest disappointments in the crypto space for 2020. Data manipulation, on the other hand, is considered easy for many projects.