Hacking: Spankchain Loses $ 40,000 Due to Breach of Smart Contract

SpankChain, a cryptocurrency platform focused on adult content lost nearly $ 40,000 in Ethereum after exploiting a flaw in its smart contracts. Apparently, some of the lost funds belong to users that SpankChain will have to repay.

Nearly $ 40,000 stolen because of smart contracts.

Cybercrime related to cryptocurrencies has been raging for some time. After Bancor was robbed for a few million dollars in Ether , SpankChain's turn comes with a loss of about $ 40,000. This company that uses cryptocurrency for adult content has announced this flight on its official blog.

The explanation comes down to a breach of accounts receivable via an insecure smart contract allowing hackers to drain digital assets.

On the other hand, the company would have made a short break (of a few days), putting the Blockchain offline for security reasons,

"Unfortunately, while we were investigating other smart contract bugs , we did not realize that the hacking took place before 7pm, when we put Spank.Live offline to avoid deposit of additional funds, in the payment contracts by smart contract ", says the team of Spank.

The intelligent contract at the base of piracy

Any platform is exposed to hacking risks regardless of its level of security. In the case of SpankChain, the malicious intelligent contract disguised as an ERC 20 token will allow thieves to steal the digital assets of the platform and customers. According to the team's explanations, the attack was facilitated by a reentrancy bug, which activates the transfer function several times in the payment chain contract.

A compensation program has been designed by Spankchain to reimburse the lost funds of the users (about 9 000 dollars in ETH and Booty) . However, the company preferred to abandon the security audit of its payment program for financial reasons (an audit is extremely expensive). Especially since the analysis time for such an operation is not worth the damage. At the same time, the Spank team promised to take a closer look at its security system by taking into account future internal and external audits

What do you think of hacking SpankChain? React in the comments section.

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