THE DAILY ENCRYPT

September 25, 2022

Cashio Project by Solana Crashes to Zero after a Multi-Million Dollar Hack

Cashio, a Solana-based stablecoin, was hacked for millions by attackers who used an "infinite min glitch"....
Photo by geralt

Cashio’s USD-pegged stablecoin CHASH has dropped from $1 to $0.00005, after an “infinite mingle” allowed attackers to mint tokens with no collateral.

Cashio developer 0xGhostChain took the Twitter to warn people not to “mint any CASH.” He also stated that the team was “investigating the issue and believe that we have identified the root cause.” Please withdraw any funds from the pools. We will publish a postmortem as soon as possible.”

According to DeFiLlama approximately $28 million worth of cashio’s protocol was drained by the exploit. However, Samczsun (a research partner at web3 investment firm Paradigm) shared a grimmer picture via Twitter today. 

The researcher wrote, “Another day. Another Solana fake accounts exploit. Cashio App lost approximately $50M this time (based on a quick scan). What is the secret to this?

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Cashio hack is not without precedent

This isn’t the first time that a DeFi protocol was stolen for millions of dollars through an “infinite min” glitch.

DeFi developers used a related exploit on DeFi’s insurance project Cover in December 2020. They minted fake tokens for liquidity to Balancer.

The attackers then exchanged the staked tokens for COVER tokens. These tokens were then traded on multiple exchanges.

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The attack caused $3 million in total damage. A note was attached to the transaction saying, “Next time, take care your own shit.”

Attackers ran the price SafeDollar’s eponymous dollar pegged stablecoin down to zero last summer after looting approximately $250,000 worth stablecoins from the platform’s liquidity pools. They then fenced the stolen coins using PolyDex.

Vitalik Ivanov

Vitalik Ivanov

Vitalik is a speaker / journalist. He has spoken and given presentations at many blockchain events across the world. Vitalik is based in the UK, he loves to travel and calls Dubai his "crypto home". Vitalik has enjoyed speaking at blockchain events and has a main focus on CBDC's, NFT's and altcoins. Vitalik says "Everything, and i mean everything will be an NFT one day".
Vitalik Ivanov

Vitalik Ivanov

Vitalik is a speaker / journalist. He has spoken and given presentations at many blockchain events across the world. Vitalik is based in the UK, he loves to travel and calls Dubai his "crypto home". Vitalik has enjoyed speaking at blockchain events and has a main focus on CBDC's, NFT's and altcoins. Vitalik says "Everything, and i mean everything will be an NFT one day".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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