In a shocking turn of events, Unibot, a popular Telegram bot used for trading on the decentralized exchange Uniswap, has confirmed a security breach. The exploit, which occurred on October 31, reportedly resulted in the loss of more than $600k.
We experienced a token approval exploit from our new router and have paused our router to contain the issue.
Any funds lost due to the bug on our new router will be compensated. Your keys and wallets are safe.
We will release a detailed response after investigations conclude.
— Unibot (@TeamUnibot) October 31, 2023
The breach was traced back to a new contract deployed by Unibot on October 29. This contract was exploited, leading to the theft of approximately $560,000 worth of various meme coins from users. Blockchain analytics firm Scopescan was the first to alert Unibot users about the ongoing hack that had initially gone undetected.
Unibot’s Team was Able to Take Quick Actions
In response to the incident, Unibot paused its new router, which was identified as the source of the token approval exploit. The team is currently investigating the hack and has committed to compensating all users who lost funds due to the contract exploit.
The market reacted negatively to this development. The price of the Unibot token (UNIBOT) witnessed an immediate drop of over 40% within an hour of the news breaking. From a price point of $57.56, it plummeted to $32.94. However, at the time of writing, there seems to be an attempt at recovery, and it is currently trading at $44.84 as per data from CoinMarketCap.
Unibot has pledged to reimburse all users who suffered financial losses as a result. An analysis of the weekly transaction data reveals that a significant portion of the stolen funds was in the form of cryptocurrencies such as Joe (JOE), UNIBOT, and BeerusCat (BCAT).
Recently, users of Maestrobots, a collection of cryptocurrency bots on the Telegram Messenger app, experienced a similar contract exploit that resulted in the loss of 280 ETH. In the aftermath of this incident, Maestrobots compensated its users by disbursing a total of 610 ETH from its own earnings. This was done to offset the losses incurred by users, as the company cited insufficient liquidity to repurchase the lost tokens.
This incident serves as a stark reminder of the risks associated with cryptocurrency trading and the importance of robust security measures. It underscores the need for constant vigilance and proactive measures to safeguard digital assets in this rapidly evolving digital landscape.