The decentralized exchange SushiSwap recently experienced a security breach resulting in hackers exploiting a vulnerability in the RouteProcessor2 smart contract.
The hackers were able to withdraw over $3.3 million from the platform before the issue was identified.
The CEO of SushiSwap, Jared Gray, took to Twitter to assure users that they were working with security teams to address the issue.
He later confirmed that the problematic smart contract had been removed, and users could once again trade on the platform.
Unfortunately, many users reported being affected by the attack, with reports indicating that 190 Ethereum addresses and 2,000 addresses on the Layer 2 Arbitrum had approved the compromised smart contract.
Following the incident, the price of the governance token Sushi dropped by 0.6% in just an hour.
It’s worth noting that SushiSwap and its leader had previously received a subpoena from the US Securities and Exchange Commission (SEC) back in March, adding to the project’s existing challenges.
In December, Gray had revealed that the project was running low on reserve capital, which was needed to support ongoing operations and development.
The incident is a stark reminder of the importance of robust security measures and highlights the ongoing risks associated with operating in the decentralized finance space.