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 decentralized 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 place because of a potential exploit in the protocol itself.

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.

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.

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