The security businesses of Blockchain have been putting in efforts to make the sector safer and more transparent.
They are working on it because with the formation of the blockchain industry came the cryptocurrency hacks too.
BlockSec is a business with relevance to smart-contract auditing and revolves around creating a safer environment for all.
Quite recently the firm was able to stop a hacker who was going to steal approximately $5M worth of crypto money from ParaSpace.
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ParaSpace is a platform for decentralized borrowing agreements, which lets users borrow or lend different crypto commodities on the blockchain of ETH.
ParaSpace users can utilize the borrowed money as collateral, apart from the system letting them borrow different commodities and NFTs in order to get a fraction of interest.
BlockSec Prevents Loss by Foiling a Smart Contract Hack
What led the hacker to reach the funds and drain money was the risk of the borrowing protocol of the smart contract.
Through that, the hacker was able to get those commodities with lesser NFTs compared to the required amount as collateral.
Luckily, the hacker was not successful in his first try at hacking into the system. That was because there was an inadequate amount of gas fees on him.
While this was taking place, BlockSec, the auditing system for smart contracts, was able to discover the hacking.
BlockSec altered the protocol within a few minutes to stop the hacker’s operations of liquidating the crypto commodity.
Abeerah Hashim is an Associate Editor working at the security company – PrivacySavvy. The reliable cyber site mentioned a warning following a bunch of crypto writers contacting them.
She said that it was great to find out that BlockSec was able to stop the hacker in time. Though, people should be aware of such attacks as they can occur anywhere and at any time on platforms.
She further added that it is integral for firms to continuously check and renew their safety options in order to keep up with possible attacks.
That is because cyber hackers have been continuously transforming and creating novel techniques for hacking.
ParaSpace Functions Put to a Halt Following the Hack
In relevance to the incident, ParaSpace posted on Twitter that the firm has detected the reason for the hacking which happened recently on the ParaSpace platform.
They said that they are glad that the entirety of the customers’ money and commodities are secure and safe. Also, none of the NFTs were harmed and the losses were less.
ParaSpace added that they had stopped the activities till they were able to remove potential risks noticed via the hacking.
Meaning that withdrawals and other proceedings cannot happen as their team is fixing the possible risks.
Lei Wu is the Chief Technology Officer and one of the founders of BlockSec. He conveyed that their security was able to detect the proceeding by the hacker automatically.
ParaSpace expounded on the incident further. They said that the hack resulted in an impact on their profitability.
Apparently, it caused a loss of about 50 to 150 worth of ETH to the smart contract because the hacker altered the tokens.
Though, ParaSpace will allot the money to smart-contract by using their own money so that nothing much has changed.
It is quite fascinating to find out the exploiter managed to leave a message following his failed attempt at stealing money.
The hacker inquired BlockSec if they could give back a fraction of the gas money he had used in the middle of hacking.
The hacker said that his operation was not successful due to a mistake in counting the gas fees required for it. He said that because the operation was unsuccessful, they could perhaps return a fraction of the money.
This was not the first time BlockSec has been successful at dealing with hackers. About a year ago, they were able to save Platypus Finance $2.4M.