DeFi Protocol BaseBros Fi Dissipates Following The Recent Rug Pull
BaseBros Fi, a yield optimization DeFi protocol on the Base blockchain, has disappeared after a rug pull. The protocol used an unaudited smart contract to drain users' funds and later vanished from the internet.
It also erased its Telegram and X accounts and its official website on the internet,leaving thousands of users stranded.
BaseBros Fi Team Rug Pulls the Platform, Disappears OnlineThe crypto space has recorded another incident of a rug pull in the decentralized finance ecosystem. This time, BaseBros Fi, a DeFi protocol on the Base blockchain, played on its users.
BaseBros Fi disappeared from the internet after stealing its users' funds. The project erased all its online details, including social media accounts on Telegram and X and its official website.
Before this incident, BaseBros Fi had almost 2,000 followers on its X platform and 3,300 members on Telegram.
Blockchain security company Chain Audits confirmed the incident in an X post. The firm discovered that BaseBros rug-pulled the platform through an unaudited and unverified vault contract.
Incident Report
Yesterday on 13.09.2024, @BaseBrosFi, a DeFi project on @base, executed a rug pull by gaining control of and draining ecosystem funds via an unaudited and unverified Vault contract.
The BaseBrosFi team exploited the unverified Vault Contract by overriding... https://t.co/FIHK0rcUBt
- Chain Audits (@ChainAudits_io) September 14, 2024
According to Chain Audits, it only audited four out of five of BaseBros' smart contracts. So, the project team used the unaudited Vault contract to drain user funds.
Chain Audits stated: The BaseBros team exploited the unverified Contract by overriding critical functions in the Strategy Contract, allowing them to withdraw funds and retire" all Strategy Contracts.
Further, the security firm claimed that BaseBros Fi never provided this Vault contract for auditing. So, the contract wasn't part of its audit scope.
Chain Audits reiterated that it has no part in BaseBros Fi's recent rug pull activity.
It said: Chain Audits had no involvement with the unverified contracts used in the exploit, and the contracts deployed after the audit were not provided to ChainAudits...
Notably, the unaudited Vault Contract has a backend lapse that allowed the project team to drain funds from the Strategy contract. This vulnerability gave the team access and leverage to drain multiple pools connected to BaseBros Fi.
Seamless Protocol Remains SAFU from BaseBros Fi's Rug PullInitially, many believed that the BaseBros Fi incident impacted the Seamless protocol because it also has similar contract labeling. In a September 13 X post, on-chain security firm Cyvers Alerts said it spotted a suspicious transaction involving SeamlessFi on Base.
Cyvers noted that the hackers drained about $130,000 in digital assets. They tried to obscure their tracks by depositing the stolen fundsin the crypto-mixing platform Tornado Cash. However, the post noted that Seamless funds are safe.
ALERT
A malicious contract was deployed on 13.09.2024 at 11:57:04 UTC, and a hack was executed just minutes later at 13:04:40 UTC.
The attacker bridged approximately $130K in... https://t.co/mbDXb3Ku9D pic.twitter.com/1JtLWmXg7w-
Also, the Seamless Protocol took to its official X account to disperse the rumors of its potential attack. It noted that Seamless contributors investigated and confirmed that the platform wasn't impacted. Again, the protocol reassured its users that their Funds on Seamless are SAFU."
GM All, important immediate update:
1. Funds on Seamless are SAFU.
2. Seamless contributors have investigated claims of a hack on the protocol and confirmed the protocol was NOT exploited.
3. Seamless contributors are working with security teams and other Base projects to...
- Seamless Protocol #BuildOnBase (@SeamlessFi) September 13, 2024
The trend in crypto hacks, scams, and rug pulls keeps increasing as the industry gains more adoption. According to Immunefi's August report, the industry has lost over $1.2 billion in assets to rug pulls and exploits in 2024.
The report noted about 154 separate crypto incidents between January and August 2024. These exploits represented a 15.5% increase year-to-date (YTD) compared to last year.
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