CertiK, a blockchain security company, has been awarded a $500,000 prize by the Sui network for identifying a significant threat that could have disrupted the layer-1 blockchain system of the entire network.
Just before the launch of Sui’s mainnet on May 3, 2023, CertiK detected the vulnerability, named “HamsterWheel,” and promptly alerted Sui. In response, the Sui network swiftly implemented patches to protect the blockchain from potential harm caused by the attack.
The CertiK team explained that the vulnerability, known as “HamsterWheel,” differed from typical attacks targeting node crashes and blockchain disruptions. This attack operates in a manner analogous to hamsters running on a wheel, as it traps nodes in an endless loop and renders networks inoperable. This potential to immobilize networks and render them inoperable makes this attack particularly dangerous.
Sui recognized the significance of CertiK’s contribution and awarded them a generous $500,000 bounty.
The Sui Network is one of the DeFi Protocols that have benefitted from CertiK’s proactive alerts on potential and already executed attacks. Recently, the blockchain security firm notified users of the decentralized finance (DeFi) project, Hope Finance, operating on the Arbitrum platform, about a smart contract exploit that resulted in a loss of $2 million.
CertiK was also instrumental in understanding the devasting effects of the Allbridge hack, a flash loan attack that prevented users from withdrawing a specific sum of funds. According to their findings, the attacker successfully obtained a $7.5 million BUSD flash loan and manipulated the price of USDT within the pool through a series of swaps. As a result, the attacker was able to exchange $40,000 in BUSD for an astonishing $789,632 worth of USDT.
CertiK has emphasized the significance of bug bounty programs and proactive security measures in ensuring the safety and integrity of blockchain systems. According to Kang Li, CertiK’s Chief Security Officer, the threats facing blockchain networks are constantly evolving, and the discovery of the HamsterWheel attack exemplifies their evolving sophistication.
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