A liquidity provider on Uniswap lost $8M

An unknown liquidity provider on the biggest Ethereum blockchain-based defi protocol Uniswap lost $8million worth of Ethereum (ETH) because of the phishing attack.

Uniswap is a digital asset exchange which uses a decentralized network protocol. Uniswap operates its operations on a decentralised blockchain network of Ethereum. Uniswap is also the name of the company that initially built the Uniswap protocol.

On 11 July, a hacker succeeded to steal around $8 million worth of crypto assets from a Uniswap liquidity provider. The hacker(s) tricked the liquidity provider via a fake airdrop. Hackers targeted the victim and tried to intend that the liquidity provider is getting the opportunity of getting free new tokens but in reality that was all about the strategy of a hacker to access the liquidity address.

After getting access to the wallet, the hacker swapped the crypto assets through the crypto mixture platform Tornado Cash. Through the mixing services, hackers swapped around $8 million worth of Ethereum coins. 

On 12 July, Binance CEO Changpeng Zhao informed the crypto industry about this matter but initially Binance CEO claimed that the incident took placed because of a potential exploit in the protocol itself. 

Our threat intel detected a potential exploit on Uniswap V3 on the ETH blockchain. The hacker has stolen 4295 ETH so far, and they are being laundered through Tornado Cash. Can someone notify @Uniswap? We can help. Thankshttps://t.co/OV3g7ayf77

— CZ Binance (@cz_binance) July 11, 2022

But later Zhao confirmed that it was only a type of phishing attack on a liquidity provider of the protocol, where hacker(s) accessed the address of the liquidity provider. 

Connected with the @uniswap team. The protocol is safe.

The attack looks like from a phishing attack. Both teams responded quickly. All good. Sorry for the alarm.

Learn to protect yourself from phishing. Don't click on links. pic.twitter.com/FIXebz3iBC

— CZ Binance (@cz_binance) July 11, 2022

Hayden Adams, Co-founder of Uniswap crypto exchange, also took to Twitter to inform the Uniswap platform users to ensure that the platform is working well with proper bug-free protocol.

This was a phishing attack that resulted in some LP NFTs being taken from individuals who approved malicious transactions

Totally separate from the protocol

A good reminder to protect yourself from phishing and not click on malicious links https://t.co/aj3Zh8UKqF

— hayden.eth (@haydenzadams) July 11, 2022

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