Crypto Swap Platform Attacked: Deposits and Withdrawals Halted on 11 Networks!
NEAR Intents suspended services following an attack that caused losses of approximately $3.8 million, while the team said it would cover all losses and that the deposit and withdrawal outage across 11 networks would last longer.
NEAR Intents, which enables cryptocurrency swaps across different blockchains, halted transactions on Thursday, October 1, due to a security vulnerability. According to initial reports cited by The Block, the attack resulted in losses of approximately $3.8 million.
The team said the vulnerability stemmed from an interaction between the Omni deposit and withdrawal infrastructure and the NEAR Intents smart contract. It announced that the contract vulnerability had been fixed and that NEAR Intents and Near.com were expected to resume service within about an hour of the announcement.
Deposits and Withdrawals on 11 Networks to Resume Later
A longer outage is expected for deposits and withdrawals on 11 networks, including BSC, Polygon, and Optimism. The team said in its announcement that transactions on these networks would remain unavailable for approximately 12 more hours.
The team pledged to cover all losses and also said it was working with law enforcement and blockchain analytics firms to trace the funds. An incident report detailing the attack is expected to be published in the coming days.
On-chain investigator ZachXBT reported unusual outflows from the protocol’s hot wallet on BSC. According to the investigator, the stolen funds were transferred to KuCoin and converted into Bitcoin through bridge transactions.
NEAR Price and New ETF Also in the Red
According to price data in The Block’s report, NEAR was trading at $4.96, down 6.7% on the day. The Bitwise NEAR ETF, NRR, which began trading two days earlier, was also down 6.4% at the time the report was published, giving back its Wednesday gains.
The development came about a month and a half after the platform announced that its total trading volume to date had exceeded $25 billion.