In a recent cyber attack, Poolz Finance has lost nearly $390,000 on both the Binance Smart Chain and Polygon. The hack was spotted by blockchain security company PeckShield on Wednesday.
The firm suspects that an arithmetic overflow issue could have been the reason behind the hack. This occurs when a larger operation yield is performed against a smaller storage system, leading to bugs in the system.
PeckShield’s analysis revealed a repeat pattern by the same sender on the Token Vesting contract. This issue has been identified in Solidity, which states that arithmetic operations wrap on overflow.
In high-level programming languages, an overflow raises an error, but in Solidity, it does not. SafeMath restores the intuition by reverting the transaction when an operation overflows.
Poolz Finance is a decentralized cross-chain initial DEX offering (IDO) platform. It enables crypto projects to obtain funding before going public.
However, its POOLZ token has been hit hard, dropping over 95% in just one day. The current price of POOLZ is $0.19, which is over 99% lower than its all-time high of $50.89 in April 2021.
The incident follows another hack on the decentralized finance (DeFi) protocol Euler Finance. Hackers stole over $195 million from the platform in a flash loan attack on March 13.
Euler Finance sent an on-chain message to the hacker, threatening to launch a $1 million reward for information that leads to the arrest and return of all funds if 90% of the funds were not returned within 24 hours. The hackers have reportedly moved the money to two new accounts loaded with DAI stablecoins and Ethereum (ETH).