Dogechain Halted, Restored After Critical Bug Found
Crypto Briefing | Sep 13, 2022 12:47AM ET
The Dogechain team denies any funds were lost despite "unwarranted minting." Dogechain halted transactions this weekend after developers detected a critical bug in the project’s bridge contracts. Dogechain was at risk of an exploit this weekend.
The project’s developers found a bug on Sept. 10 and paused block creation for several hours. On Sept. 11, the development team said the network was again live with ongoing maintenance.
The bug could have allowed attackers to freely mint wrapped DOGE (wDOGE) on the bridge network.
The project said that its network currently runs on a Proof-of-Authority (PoA) consensus mechanism that allowed the team to reverse the “unwarranted minting of wDOGE.” It added that it would remain under PoA until the team is fully prepared to transition to Proof-of-State (PoS) consensus.
Dogechain noted that the issue concerned an “internal bug” rather than “an exploit or hack.” The team assured the public that no Dogecoin (DOGE) had been lost or stolen. It added that no “internal funds” had been lost either—presumably referring to Dogechain (DC) and wrapped Doge (wDOGE) tokens.
However, some sources argue that Dogechain did indeed lose funds. Independent crypto researcher Crumbs suggested that an attacker exploited the vulnerability to mint 9.7 million wDOGE ($600,000). The supposed attacker converted as much as $316,000 to other assets; a portion of those funds may have been deposited to Binance.
Dogechain contributor Roc Zacharias responded to Crumbs and denied the theft, stating that the project “had [an] internal bug [and] no hack.” He continued,
“No funds lost. Nothing bridged out [or] lost like you’ve suggested here.”
Despite those denials, it appears that an Ethereum address beginning with blacklisted by Dogechain. Additionally, Dogechain’s official account of events implies that funds were minted without warrant at one point, even though those mints were reversed.
Those facts do not confirm that an attacker successfully committed theft. However, it does seem that an individual performed transactions that could have led to a loss of funds.
It should be emphasized that the vulnerability affects Dogechain, not Dogecoin . The two projects have no official relationship. Dogechain aims to build a Layer 2 network that allows bridged Dogecoin tokens to be used on new applications such as decentralized exchanges and NFT marketplaces.
Get The News You Want
Furthermore, the vulnerability described above is entirely unrelated to a data leak that recently affected the Shiba Inu token, another popular doge-themed blockchain project.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.