ParaSwap, a decentralized finance aggregator, recently resolved a critical vulnerability in its Augustus v6 smart contract and has started returning crypto to users. This bug was discovered shortly after the contract’s launch on March 18, with the aim of enhancing swapping efficiency and reducing gas fees. Hackers exploited this vulnerability to drain funds from approved wallets.

The ParaSwap team announced on March 24 that all assets recovered by white hat hackers have been returned, and permissions to AugustusV6 have been revoked. However, 213 addresses are yet to revoke their allowances to the compromised contract.

In response to the security breach, ParaSwap paused its API and secured at-risk funds through a white hat hack. They have been actively engaged in identifying hacker addresses and tracing the movement of funds in collaboration with Chainalysis and TRM Labs. The team has also initiated communication with the hackers through on-chain messages, urging them to return the stolen funds.

If no response is received by March 27, ParaSwap plans to pursue legal means for recovery. Initial data suggests that hackers made off with $24,000 before the vulnerability was detected. Despite this breach, ParaSwap has taken proactive steps to address the situation by submitting a detailed report to relevant authorities.

The incident highlights the ongoing challenges in ensuring the security of blockchain and DeFi platforms. Previous breaches in other platforms serve as a reminder of the risks associated with these technologies. Stay informed about the latest developments in the cryptocurrency and blockchain space on Global Crypto News.

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