Decentralized finance project (DeFi) FinNexus (FNX), which is touting itself as “the most versatile DeFi options platform”, claimed it was hacked yesterday, resulting in a massive dump of its tokens by the attacker. However, some users suspect a bad game.
“The FinNexus contract provider (FNX) has changed the token owner to an address in Ethereum and BSC [Binance Smart Chain]. This address was minted: 323 million FNX (6 million USD) at Ethereum, 60 million FNX (1.6 million USD) at BSC and the deposit of tokens, ”tweeted The blocks Research analyst Igor Igamberdiev added yesterday: “Rug Pull or StOlEn PrIvAtE kEy?”
FinNexus’ contract provider (FNX) has changed the token owner to an address in Ethereum and BSC.
This address was coined:
– FNX 323M ($ 6M) on Ethereum
– FNX 60 million (USD 1.6 million) at BSC
and started emptying tokens.
Rug Pull or StOlEn PrIvAtE KEy? pic.twitter.com/yuYe9yM0WM
– Igor Igamberdiev (@FrankResearcher) May 17, 2021
Basically, control of FinNexus’ smart contract was suddenly transferred to an unknown third-party wallet, allowing a ton of new tokens to be created and instantly exchanged for Etehreum and Wrapped Bitcoin.
As a result, the price of FNX has collapsed, falling up to 92% since yesterday. According to the crypto metric platform CoinMarketCapThe token fell from its 24-hour high of $ 0.356 to $ 0.0272 at some point. At press time, FNX is trading at around $ 0.0637, down 82% on the day.
FinNexus later confirmed the incident, claiming its ERC-20 smart contract was the victim of a hack.
“We regret that we have informed our traders and investors that the FinNexus erc20 contract has apparently been hacked. For security reasons, please withdraw your money from the pools. The team is working on this problem and we will provide updates as soon as they are available, ”explained the developers.
We regret having informed our traders and investors that the FinNexus erc20 contract has apparently been hacked.
For security reasons, please withdraw your money from the pools.
The team is working on this issue and we will provide updates as they become available.
– FinNexus (@fin_nexus), May 17, 2021
An “honest” hack or a carpet move?
However, some users argued that this may have been a good old “carpet move” from FinNexus – a malicious practice where crypto developers abandon their projects and run away with users’ funds.
“No hack, ownership was transferred from the original contract maker to a new wallet that coined over 300m fnx, drew carpet liquid on uni and sushi, and transferred it to another new wallet that converted it to eth / wbtc,” said one user pointed out on twitter.
original contract holder: https: //t.co/cS80tnEZAb
new owner / rugpull-er: https: //t.co/cS80tnEZAb#crypto #fnx #rugpull
– James Rozelle @ (@ JamesRozelle31) May 17, 2021
Others similarly questioned the validity of FinNexus’ hack claims, suggesting that the attack may also have been carried out by one of the disgruntled project staff.
Whatever the case, significant damage has already been done to both the project and its investors.
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