Earlier this year, exploitation in the realm of cryptocurrency was significantly lower compared to 2022. However, several significant exploitations in the past few months have prompted the crypto community to contemplate how to address such issues in this rapidly evolving sector.
Unitbot’s new contract experiences $560k asset theft
On October 29, 2023, Unibot a popular telegram bot widely used for trading on Uniswap and recently released a new contract. Unfortunately, on October 31, 2023, its contract experienced exploitation, resulting in a significant loss of around $560,000 worth of meme-coins from the Unibot users.
However, this exploitation in the newly deployed Unibot contract was identified by Scopescan a blockchain security firm. It also informed the users of Unibot about this ongoing exploitation that had gone unnoticed.
The exploiters specifically targeted this newly released Unibot contract, and as a result loss of cryptocurrencies held by multiple users has been observed. Later, Unibot confirmed the hack by disclosing a few details:
“We experienced a token approval exploit from our new router and have paused our router to contain the issue.”
During the ongoing investigation, Scopescan recommended that Unibot users cancel the approval for the exploited contract and transfer the fund to a new wallet. Scopescan also found that the exploiters are in the process of converting stolen meme-coins into Ether.
According to the data from weekly transactions, it has been observed that cryptocurrencies such as Joe (JOE), UNIBOT, and BeerusCat (BCAT) constitute a significant portion of the stolen assets.
Also Read: September 2023 sets a record with $330 million in Crypto losses
Unibot token plummeted by over 40%
In this highly volatile crypto market, investors are aware that any negative news or rumors can have a substantial impact on the overall market. However, in the case of Unibot, its token experienced a massive fall. As seen in the Unibot token chart, due to this exploitation, its prices significantly fell by 42.7% within just an hour, dropping from $57.56 to $32.94. As of writing it is witnessed that its price is currently recovering.
Unibot’s $560,000 compensation promise to affected users
As Unibot users experienced losses of a significant $560,000 in this exploitation. Unibot has made a promise to compensate all affected users for the exploitation of the newly released Unibot Contract.
Now, the crypto community is looking toward Unibot to see how much they can recover the stolen assets from the exploiters. As we have witnessed in the past, exploiters sometimes return the stolen assets to the platform when offered a percentage of the bounty.