PeckShield, which monitors blockchain security issues, reported that a bug was discovered in the LevelReferralControllerV2 smart contract that allowed attackers to send repeated referral requests from the same epoch;
Level Finance has suspended the referral program.
“We have temporarily shut down the referral program and stopped the exploit by isolating it from other contracts. Liquidity providers and the DAO treasury were not affected,” Level Finance assured.
The Level Finance team announced that the platform will roll out a new referral contract implementation within the next 12 hours.
An investor under the nickname 0xDevNor suggested that the LevelReferralControllerV2 security issue was a result of insufficient attention by Level Finance platform developers to audit smart contracts prior to deployment.
Earlier, cybersecurity and auditing firm CertiK published report that more than $103 million was stolen from cryptocurrency projects during April as a result of hacking attacks.