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HomeNFT NewsBase’s largest DEX, LeetSwap, halts trading amid exploit concerns

Base’s largest DEX, LeetSwap, halts trading amid exploit concerns

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Decentralized exchange LeetSwap, which operates on Coinbase’s Base network, has announced a pause on trading, citing concerns of a potential exploit.

LeetSwap tweeted on Aug. 1 that it noticed some of its liquidity pools may have been compromised and temporarily stopped trading to investigate. In a subsequent update, the exchange said it is working with on-chain security experts to try to recover locked liquidity.

While the exchange did not share many details, a number of blockchain sleuths have since provided some commentary about how the exploit is likely to have taken place.

Algorithmic market maker Wintermute’s research head, Igor Igamberdiev, believes the attacker used an exposed smart contract function, allowing them to increase the price of a token which would then allow them to drain wrapped Ether (ETH) from LeetSwap’s liquidity pools.

Igamberdiev added the potential exploit has seemingly netted the attacker 342.5 ETH, worth over $630,000.

Multiple blockchain security firms including PeckShield, Beosin, BlockSec and CertiK confirmed Igamberdiev’s theory and the amount exploited in separate tweets.

Related: Pro-XRP lawyer Jeremy Hogan’s scam tweet bonanza finally falls silent

In an update by LeetSwap roughly an hour and a half after it notified of the trading halt, it said it’s working with security experts to find a way to recover liquidity locked on the platform.

It’s the second Base-related controversy in a day. Earlier, the developer of a Brian Armstrong-themed memecoin called BALD removed liquidity for the token, causing its price to drop.

Allegations flew that the project was an exit scam, which the project developer denied.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

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