The WOOFi development team acknowledged Arbitrum’s abuse of the swap contract, while assuring users that all other WOO contracts remain secure.
According to Cybers Alerts, WOOFi’s smart contract for token exchange was exploited in Arbitrum WooPPV2, resulting in the loss of $8.5 million worth of cryptocurrency. Analysts reported on March 6 in an
Analysis conducted by the company also showed that hackers have already used cross-chain bridges to distribute stolen funds to other externally owned accounts on other blockchains. The exact nature of the hack has not yet been revealed, but the WOOFi team stated in a subsequent update that all other WOO contracts are secure.
The WOOFi team announced a 10% white hat bounty for the individual responsible for the exploit. Additionally, a reward was announced for any information that would help identify the attackers, although the size of the reward was not specified.
Launched in November 2021, WOOFi is a decentralized exchange that offers both swapping services and trading activities through two products. Following this news, WOOFi’s native token, WOO, fell nearly 8% to $0.5, according to CoinMarketCap.