Hashflow, a leading crypto trading platform, has committed to fully compensating affected users following a security breach that resulted in the loss of at least $600,000 worth of digital assets.
On June 14, blockchain security firm Peckshield reported an issue with Hashflow’s trading platform, highlighting an “approve-related issue.” The firm estimated losses of approximately $600,000 in Aribtrum’s ARB token and Ether (ETH), with ETH trading at around $1,633 at the time.
Shortly after, Hashflow took immediate action to address the situation and assured users that the exploit was related to contract approvals, not impacting its decentralized exchange, which remained fully operational.
Peckshield suggested that the hacker responsible for the exploit might be a white hat hacker, as they provided a contract with a recovery function and an option for donation.
On June 15, Hashflow provided recovery instructions for affected users, specifying the need to revoke approvals before recovering funds. Two recovery options were available: one for retrieving total funds and another for donating 10% to the supposed white hat hacker who prevented further losses.
DeFi enthusiast YannickCrypto emphasized the importance of users revoking token allowances to depreciated contracts to avoid future vulnerabilities.
In the aftermath of the incident, Hashflow’s native token, HFT, experienced a 7% decline, dropping to $0.338. The token remains significantly down, with a 90% decrease from its all-time high of $3.61 in November 2022.
This incident follows another DeFi exploit where Sturdy Finance, a lending platform, lost approximately $800,000 worth of Ethereum due to price manipulation.
Hashflow’s commitment to promptly addressing the breach and ensuring full user reimbursement serves as a testament to their dedication to user protection and strengthens confidence in the platform’s security measures.
Also Read: Sturdy Finance Offers $100K Bounty for Return of Stolen Funds
