The unknown took advantage of a code vulnerability and independently produced 80 billion AXN tokens. He then sold them on the stock exchange, appropriating 1300 ETH investors.
The Axion Network token developed by the Russian project Rock’N’Block depreciated in a few minutes. The AXN crypt currency was released yesterday and immediately added to the Uniswap exchange. At first, the token was worth around $0.0005. But a few minutes after the opening of trading, the exchange rate collapsed to almost zero, where it remains now.
The fall in the AXN price is the result of a hacker attack. The unknown, when adding an asset to the exchange, exploited the vulnerability of a smart contract and independently issued almost 80 billion AXN tokens. He then transferred them to Uniswap and sold them, appropriating about 1,300 Ethereum, i.e. all the funds invested by investors. At the current exchange rate, this is about $450,000, Cointelegraph reports.
Immediately after the attack, the Axion Network team wrote on Twitter account, which compensates investors for the lost funds. The developers also said that they would try to restart the project in the near future.
The Axion Network team ordered an audit of the smart contract code before launching its project. It was checked by 5 independent teams and no errors or vulnerabilities were identified. One of the auditors, a CertiK startup, suggested after the attack that it was organised by someone in Axion Network insiders. After the audit he could add a loophole to the smart contract and use it after the token listing on Uniswap.
In late October, hackers attacked the DeFi project Harvest Finance. In 7 minutes, the unknown was able to misappropriate $25 million worth of cryptographic currency. He spent some of the stolen funds through a tricky mixer, Tornado Cash.