Pike Finance offered hackers a reward of 20% of assets ($320,000) for returning stolen funds. The same reward is offered for information through which the project will be able to return stolen crypto assets.
The exploit was discovered on April 30. The Pike Finance team explained that the exploit was caused by insufficient security measures implemented in contracts during the transfer management process using the Cross-Chain Transfer Protocol (CCTP). This service is offered by Circle, which produces the USDC stablecoin, noted Pike Finance.
“New variables were introduced that changed the structure of the store, in particular the position of the initialized variable. As a result, the position occupied by the initialized variable was occupied by other variables, which led to a mismatch in memory allocation,” the Pike Finance team tried to explain on their page on the X social network.
The attackers managed to update peripheral contracts, then bypass administrator access and steal crypto assets. The Pike Finance team has assured that it will develop a plan for a full refund of all funds to users. Security experts also warned customers to remain vigilant. Fraudsters may take advantage of the incident to publish false information about the return of tokens in order to steal user data through phishing sites.
Over the past year, losses of cryptocurrency companies amounted to $2.61 billion – this is 27% less than in 2022, PeckShield figures say. In February, hackers were able to carry out a major hack – they attacked the PlayDapp gaming platform and withdrew assets worth $31 million.
Source: Bits
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