Paid Network, a DeFi platform aimed at real-world businesses, has been exploited today in an \u201cinfinite mint\u201d attack that has sent PAID token prices plunging upwards of 85%.<\/p>\n
While the exploit netted nearly $180 million in PAID tokens at the time of the attack \u2014 what would have comfortably been the largest exploit of a DeFi protocol \u2014 the hacker\u2019s payday will end up being far less. One observer noted that the attacker\u2019s wallet only converted some of their tokens to wrapped ether, leaving the rest in rapidly-devaluing PAID tokens:\u00a0<\/p>\n
The attacker\u2019s wallet still has over 57 million PAID tokens worth $37 million.\u00a0<\/p>\n
The exploit is conceptually similar to an attack on insurance protocol Cover that took place in late December last year. In that instance, the team took a \u201csnapshot\u201d of holders prior to the attack and issued a new token, returning the supply of the token to pre-exploit levels. <\/p>\n
The team confirmed on Twitter that they are currently planning for a snapshot and restoration:<\/p>\n
However, token holders anxious for a resolution may be out of luck. Some in the community are speculating that the attack on PAID wasn\u2019t an exploit at all, but instead a \u201crugpull\u201d \u2014 a colloquial term for an insider designing contracts to specifically make them exploitable and swiping user funds.\u00a0<\/p>\n
Nick Chong of Parafi Capital noted on Twitter that Paid\u2019s deployer contract, an externally controlled account, transferred ownership of the deployer to the attacker shortly before the mint, indicating that a member of the team either rugpulled, or errantly allowed the attack to take place with a security lapse:<\/p>\n
Additionally, a DeFi risk analysis account @WARONRUGS warned of exactly this exploit in late January, noting that the contract owner can mint PAID tokens at any time:<\/p>\n
An on-chain note sent to the attacker has ominously warned that \u201cthe LAPD will be in contact with Kyle Chasse very shortly.\u201d Kyle Chasse is the CEO of Paid Network.<\/p>\n
Paid Network did not respond to a request for comment by the time of publication.\u00a0<\/p>\n