ParaSwap To Compensate Victims For A Hack In March 2024

ParaSwap, a DeFi aggregator, has initiated a firm response to assist customers impacted by a recent flaw in a contract. On April 6, 2024, the ParaSwap DAO passed a resolution to reimburse individuals who fell prey to a hacking incident in March 2024, utilizing its treasury resources for compensation.

This action comes in the aftermath of identifying a security loophole in the Augustus V6 contract, which resulted in financial losses for several users. Despite substantial recoveries made through white hat efforts, a number of users still experienced losses.

ParaSwap Foundation Will Share The Next Steps Needed

On March 20, 2024, in response to a security breach, ParaSwap promptly suspended its API and terminated its V6 contracts, effectively preventing further misuse. Through the efforts of white hat hackers, $3.4 million was recovered, thereby safeguarding future ParaSwap users from potential harm.

Nevertheless, the breach impacted two distinct groups of users. Initially, victims prior to the intervention by the white hats suffered losses totaling $24,000. Subsequently, users who deposited assets after the white hats intervened experienced losses amounting to roughly $340,000.

We have compiled a list of all addresses that still have allowance given to AugustusV6:https://t.co/bcNQa8d2rU

If you see your address here, YOUR FUNDS ARE AT RISK.
PLEASE REVOKE PERMISSIONS TO THE AUGUSTUS V6 contract following the guide on the video pic.twitter.com/Ly5mshOtLg

— ParaSwap (@paraswap) March 22, 2024

In the aftermath of an extensive investigation and recovery operation, ParaSwap announced on April 4 a plan to seek a grant from its DAO aimed at compensating users whose losses were not mitigated through white hat efforts.

The proposal, receiving a resounding approval of 96.81%, outlined the allocation of unused wETH/ETH collected by the DAO (about 150 wETH) and FTM accrued through Fantom’s Gas Program (27,207.53 FTM) for the grant. The value of these assets stood at $567,426 at the time of reporting.

ParaSwap Foundation also indicated that it would later provide instructions for affected users on how to claim their compensation, depending on their eligibility.

Multiples Hacks In March

In addition to the incident at ParaSwap, the DeFi and cryptocurrency sectors were plagued by multiple hacks throughout March, with Prisma Finance’s $11 million loss being among the most significant.

Moreover, Cyvers released a report indicating that the total value stolen across the crypto space in the first quarter of 2024 approached $739.7 million.

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