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Another hack: $100 million stolen from Harmony in attack on Horizon Bridge

 


A vulnerability was exploited in the Horizon Bridge to the Harmony Layer-1 blockchain and stole $100 million in altcoins, which are currently being exchanged for Ether (ETH).


This hacking attack could confirm community concerns about the robustness of the so-called "two-out-of-four multisig" principle used to secure the bridge.


11 transactions were made from the bridge using different tokens. Since then, the hacker has been sending tokens to another wallet and swapping them for ETH on the decentralized exchange (DEX) Uniswap. Then the ETH will be sent back to the original wallet.

So far, Frax (FRAX), Wrapped Ether (WETH), Aave ( AAVE ), Sushi ( SUSHI ), Frax Share (FXS), AAG (AAG), Binance USD (BUSD), Dai ( DAI ), Tether ( USDT ), Wrapped BTC (WBTC) and USD Coin ( USDC ) stolen from the bridge in this exploit.


The Horizon Bridge enables token transfers between Harmony and the Ethereum network, Binance Chain and Bitcoin. Harmony, the operator of the bridge, announced on June 23 that the bridge was temporarily offline. According to the project, the BTC bridge and the corresponding assets were not affected by the attack.


The Harmony team also said it was working with "national authorities and forensic scientists" to identify those responsible. There should be an explanation later.


The developers and Harmony co-founder Nick White have not yet responded to a request for comment. Harmony is a Layer 1 blockchain and uses Proof-of-Stake consensus. The native token is called ONE.


Concerns have been raised in the past about the robustness of Horizon's multisig wallet on Ethereum. This only requires two of the four signatures so that money can be withdrawn. One of the founders of crypto venture capital fund Chainstride Capital, Ape Dev , wrote on Twitter on April 2 that the bridge was risking "a 9-figure sum" due to the low number of signatures required.

Ape Dev's fears appear to have come true as $100 million in assets have now been stolen from the bridge.


He is far from the only developer in the crypto industry who has concerns about the security of token bridges.


Vitalik Buterin spoke about the problems with token bridges in a Reddit post in January this year. He explained that when bridges are hacked, it threatens the liquidity of all affected chains. He added that as the number of token bridges increases, there is a greater risk that a 51 percent attack on one chain will have a major impact on others.


Since he raised his concerns, Meter 's token bridges, Axie Inifinity 's Ronin Bridge, and Wormhole Bridge have all been hacked , stealing nearly $1 billion in total.

Multisig wallets are often a security problem in attacks. The Ronin Bridge was secured by nine validators, only five of which were required to verify a transaction. The attacker took control of the required five validators and stole over $600 million worth of assets.

The market does not seem to have reacted to the attack yet, as the prices of the affected coins and tokens have not changed significantly. However, in the past 24 hours, ONE is down 7.4 percent. The decline has been greatest in the last few hours. According to CoinGecko, the coin is trading at $0.024.

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