Crypto Trading Tool Unibot Hacked, $640K Stolen in Security Breach
By Noah Washington November 2, 2023
- Popular crypto trading tool Unibot suffered a "token approval exploit", resulting in estimated losses of $640,000.
- The incident highlights vulnerabilities in the crypto industry, especially with inter-blockchain bridges, as numerous exploits have occurred
- These continuous hacks serve as a wake-up call for the crypto industry to prioritize security and take measures to better safeguard user assets
In a world where cryptocurrency is continuously striving to achieve mainstream adoption, yet another hack has emerged, further questioning the security measures in place to protect users' assets. This time, the popular Telegram-based trading tool, Unibot, has fallen victim to a "token approval exploit", resulting in an estimated loss of around $640,000 worth of cryptocurrency.
The team at Unibot was quick to address the situation, reassuring its users that their keys and wallets were safe, and that all losses will be fully compensated.
Unibot's Crypto Vulnerability
Unibot is a highly regarded trading tool within the crypto community, primarily due to its user-friendly interface and innovative features. The tool, accessible via the messaging app Telegram, allows users to seamlessly swap cryptocurrencies without exiting the application. It provides users with the option to copy the trading strategies of successful traders, while also offering MEV-protected trading.
A "token approval exploit" refers to a vulnerability that allows unauthorized individuals to access or move a user's tokens beyond the intended limit. In the case of Unibot, the siphoned funds were promptly converted to ether (ETH), following a transfer to Uniswap, a decentralized exchange. From there, the funds were moved through Tornado Cash, mixer, in an attempt to cover the tracks of the exploiters.
The Exploit Aftermath
In the wake of the Unibot exploit, there's been a flurry of activity and reactions from all corners of the crypto world.
A user reacting to the Unibot Source: Twitter/X
Legal-wise, Unibot may be exploring its options, but specifics on any actions against the exploiters remain under wraps. Unibot users range from upset to concerned, with many taking to social media to voice their frustrations and worries.
Crypto's Glaring Vulnerabilities
This incident highlights some of the vulnerabilities present within the crypto industry, with inter-blockchain bridges being a particularly weak link.
The onslaught of hacks and exploits in the crypto space serves as a stark reminder to never share a seed phrase online and to always sign smart contracts with a secondary wallet. As the industry inches closer to achieving mainstream adoption, the challenges associated with safeguarding users' assets become increasingly evident.
The Unibot exploit serves as yet another wake-up call for the crypto industry to prioritize security and take proactive measures to protect users' assets from the clutches of malicious actors.