Just three days after SushiSwap was hacked for $3.3 million, the protocol developed a reimbursement plan.
SushiSwap, an Ethereum-based decentralized exchange (DEX), released an update on its plans to repay users who were impacted by the $3.3 million attack.
Users whose assets were taken by white hat security teams would receive refunds quicker than users whose assets were taken by black hat hackers, according to a tweet from the exchange’s official Twitter account.
The SushiSwap $3.3 Million Hack
Remember how the popular decentralized exchange’s approval contract was breached on Sunday, April 9? Trade routing on the platform was carried out via the compromised smart contract RouterProcessor2.
SushiSwap lost 1,800 ether (ETH) tokens, worth nearly $3.3 million. These tokens were stolen from an individual by the name @0xsifu.
SushiSwap rushed to white hat security teams as soon as the security breach was identified, and they were able to recover funds from the compromised addresses. In order to prevent further losses, the protocol urged users whose addresses were exposed by the compromised contract to promptly cancel the approval.
BlockSec, a blockchain security company, revealed that it blocked one of the hacker’s transactions and saved 100 ETH worth $186,000 while the DEX worked to fix the problem. The security company claimed that as soon as the attack was noticed, its staff came to the victim’s aid.
SushiSwap asked customers to carry on with their regular operations after updating its web app to fix the bug. The exploited contract is less than ten days old, thus traders who haven’t dealt with the exchange in the recent ten days are protected, according to the protocol.
SushiSwap will compensate Users
SushiSwap announced that consumers whose funds are in the whitehat address would collect their assets through a Merkle Claim contract, which is soon to go live.
The Sushi team also stated that customers whose accounts had been compromised by blackhat hackers would need to send an email to the protocol or file a ticket in the project’s official Discord channel with details on the transaction IDs and blockchain data of the lost funds.
The protocol will set up an opt-in claims process for managing each claim individually. In-depth instructions for the process will be released later by the exchange.
2️⃣ Unrecoverable funds (blackhat) – The Sushi team will establish a claim process, which the user can opt-in to, and we'll manage claims on a case-by-case basis.
More details surrounding this process will come shortly.
— Sushi.com (@SushiSwap) April 12, 2023