A fund drain is an event where cryptocurrency assets are illicitly removed from a smart contract, wallet, or protocol. This typically occurs through exploitation of a security flaw or by gaining unauthorized control over the associated private keys. The result is a depletion of the targeted assets, often with significant financial repercussions for stakeholders.
Context
Fund drains are a recurring and significant concern in the digital asset space, frequently reported as major security incidents affecting decentralized finance protocols and exchanges. The analysis of these events often focuses on the specific vulnerabilities exploited, such as reentrancy attacks or compromised administrative controls. Ongoing efforts aim to bolster smart contract auditing and secure key management practices to prevent future occurrences.
A critical router contract vulnerability allowed unauthorized arbitrary function calls, compromising user funds within Hyperdrive's Treasury Bill market.
A delegate call vulnerability within a multi-signature wallet granted administrative control, allowing unauthorized asset transfers and limitless token minting.
Compromised administrative control over smart contract upgrade mechanisms poses critical systemic risk, enabling direct asset exfiltration and undermining protocol integrity.
A critical validation flaw in Arcadia Finance's Rebalancer contract enabled an attacker to hijack asset management, leading to a multi-million dollar fund drain.
A critical flaw in Infini's smart contract administration enabled an insider to drain $49.5 million, exposing the severe risks of unchecked system privileges.
A compromised administrative private key enabled unauthorized contract upgrades, leading to significant asset drain and highlighting critical key management failures.
A critical vulnerability stemming from unaudited code and single-signature deployment enabled a $2.59 million state manipulation attack on the Sui-based Nemo Protocol.
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