On December 1, 2024, Clipper, a decentralized exchange (DEX), was targeted in a cyberattack that led to a loss of approximately $450,000. Initially, rumors suggested that the attack was caused by a private key leak. However, Clipper quickly clarified that the exploit stemmed from a vulnerability in its withdrawal functionality, specifically within the Optimism and Base pools. This breach accounted for around 6% of the exchange’s total value locked (TVL). While the attacker attempted to exploit other chains, those efforts were unsuccessful, and the vulnerability was eventually contained.
In response to the attack, Clipper immediately halted all swaps and deposits across its platform to prevent further damage. However, the withdrawal function remained active but with significant restrictions. Users were no longer able to withdraw single assets, instead having to withdraw a mix of all assets in the affected pools. This measure was implemented to limit the exploit’s reach and protect remaining funds on the platform.
Clipper also emphasized that the breach was not due to a private key leak, as was initially suggested by third-party claims. The vulnerability was traced back to a bundled swap-and-withdraw function, which allowed attackers to exploit the system and withdraw more funds than they had initially deposited. By using the platform’s API to sign transactions, the attacker manipulated the withdrawal process, ultimately siphoning more tokens than expected.
The platform has since assured its users that no additional pools or chains were impacted, and it continues to conduct a thorough investigation into the exploit. Clipper is focused on tracing the stolen funds and recovering them, providing regular updates as new information becomes available. In a final attempt to resolve the situation amicably, the platform has even reached out directly to the attacker, urging them to come forward for a peaceful resolution. As of now, Clipper maintains transparency and reassures users that no funds within the pools were compromised.
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