LeetSwap, a decentralised exchange functional on Coinbase, has halted its trading operations due to a possible exploit, as stated by Cointelegraph.
According to Cointelegraph, on August 1, 2023, LeetSwap informed that its certain liquidity pools have been potentially jeopardised. From what it’s understood, the exchange briefly ceased trading to inspect the matter, in collaboration with on-chain security experts. The exchange is yet to provide further details around the concern.
Based on Cointelegraph’s data, Igor Igamberdiev, research head, Wintermute, stated that the hacker made use of an exposed smart contract feature. Reportedly, the feature permitted amplification of a token’s price which caused wrapped Ether’s drainage from LeetSwap’s liquidity pools. Igamberdiev also claimed that the exploit enabled the hacker to clock 342.5 ETH worth above $630,000.
Moreover, Cointelegraph noted that Igamberdiev’s hypothesis was approved by blockchain security firms such as PeckShield, Beosin, BlockSec, CertiK, among others, through Twitter.
(With insights from Cointelegraph)