In a Twitter post, the LeetSwap team said that some of the venue’s liquidity pools may have been compromised, so the exchange’s management decided to suspend trading to investigate the situation. A little later, the exchange said it was working with blockchain security experts to restore the blocked liquidity.
While the LeetSwap team did not provide details, analysts have already speculated about possible ways the liquidity pools may have been compromised.
Igor Igamberdiev, head of research at cryptocurrency market maker Wintermute, wrote that the hacker likely used one of the features in LeetSwap’s smart contracts that allows to manipulate the price of tokens in liquidity pools and withdraw wETH.
He noted that such a feature should be hidden and only available to the development team. According to Igamberdiev, the hackers managed to withdraw 342.5 ETH ($630,000). The analyst’s theory was confirmed by representatives from various blockchain security companies, including PeckShield, Beosin, BlockSec and CertiK.
As a reminder, the Base blockchain is a layer 2 solution for the Etherium network. Testing of the network began earlier this year.