Umbrella Network Hacked: Reportedly $700k lost

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Key Takeaways:

  • Umbrella Network notified a hack through its twitter page.
  • The hack reportedly led to a loss of $700k.

In July 2021 the Chainswap contracts were hacked and the hackers stole tokens from 10 projects. The projects included Umbrella Network, Antimatter, Dafi, Option Room, Blank, Razor, Oro, and others.

At that moment, the Umbrella Network did not change any of its token contracts on the Ethereum platform. Rather, it replaced all the frozen contracts and planned to buy back all the lost $UMB. It did the same on July 15 of the same year. 

However, recently the reward pools have been drained from both BNBCHAIN and Ethereum. Consequentially, the hackers have gained $700K. This has been possible due to an underflow in withdrawal that was unchecked. This led to users withdrawing money from the pool even with zero balance. 

The hackers of the Chainswap contracts exploited the Polar Stream staking contracts on both ends. They later withdrew liquid money utilizing the LP tokens that were drawn from both the UMB-ETH and they later sold UMB tokens in the open market worth $2.2 million. 

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Shreya Bhattacharya
Shreya Bhattacharya

A journalist & writer exploring new topics every day!

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