Hackers Steals $870K From RocketSwap on Base

RocketSwap on Base Falls Victim to Crypto Hackers!

Barely one week after Coinbase’s Base went public on the mainnet, hackers are already perpetrating their illicit activities on the Layer-2 network.

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Decentralized exchange RocketSwap which leveraged the Base network was exploited and 471 Ethereum (ETH) worth approximately $870,000 was stolen from the protocol, according to blockchain security firm PerkShield.

RocketSwap Team Acknowledges Security Lapses

The team behind RocketSwap claimed that a series of lapses led to the attack, including the exchange’s use of offline signatures in the launchpad deployment. Another associated cause is the decision to store private keys on the server. Several users have accused the protocol of a potential rugpull but the team clarified that a third party is responsible for the exploit.

The hacker was said to have executed a “brute force” assault on a cloud server utilized by the project. This gave them access to extract RocketSwap’s private security key and made multiple asset transfers from its yield farm. 

“We are sorry to inform you that the team needed to use offline signatures when deploying the launchpad and put the private keys on the server. A brute force hack of the server was detected, and due to the proxy contract used for the farm contract, there were multiple high-risk permissions that led to the transfer of the farm’s assets,” the RocketSwap team said in a statement. 

Bridging Assets Between Base And Ethereum

The funds were immediately bridged from Base to Ethereum and in no time, a memecoin called LoveRCKT was created. Notably, the price of this memecoin jumped by three times its initial value of $0.00000001 before finally dropping by more than 90%. 

Before the hack, data from L2beat implied that Coinbase’s Base had seen more than $100 million worth of assets bridged over to the network. The value has continued to increase since then until this latest exploit that led to a transfer from Base.

LeetSwap on Base Loses $630K to Hackers 

This is the second hack on the Base network in quick succession following the activation of the network’s developer-only mainnet in July. 

LeetSwap, another DEX which operates on the Base network, was forced to suspend trading on its platform on Tuesday, August 1st after it discovered that some of its liquidity pools were likely compromised. In the end, the protocol recorded a huge loss of $630,000.

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