RocketSwap, a decentralized exchange (DEX) operating on a Base Layer 2 network, was the victim of a cyberattack that resulted in a staggering loss of 471 ETH, equivalent to around $870,000.
Hacker Stole $870,000 From RocketSwap, Releases Memecoin
The attack raised concerns about the security of the Base network following the recent breach in LeetSwap, another DEX that lost $630,000 in July.
According to cybersecurity firm PeckShield, the breach was orchestrated by a hacker who managed to exploit a series of vulnerabilities in RocketSwap's infrastructure.
DEX's security shortcomings include the use of offline signatures during launchpad deployment and the unfortunate storage of private keys on a server, providing a window of opportunity for the malicious actor.
While acknowledging its security shortcomings, the RocketSwap team vehemently denies any involvement in the hack, opposing suspicions of “rug pull”, a fraudulent maneuver in which developers abandon a project after making significant financial gains.
Making a statement about the incident, the RocketSwap team expressed their regret for the violation of security measures.
The hacker responsible for the RocketSwap breach embarked on a memecoin adventure shortly after the attack. The stolen assets were moved from the Base blockchain to Ethereum, where the hacker quickly spawned a memecoin called LoveRCKT.
Surprisingly, investors flocked to the newly minted token, causing the price to jump from $0.00000001 to $0.00000003 in one day. However, it lost 90% of its value over this price in a short time.