December 8, 2022

Arbitrum, a popular second layer solution for Ethereum, shared a white-hat hacker on September 19. sourceThe hacker discovered a potential vulnerability in the Arbitrum code. As a result, the network used 400 ETH, worth about $560,000, as a reward.

Over the years, numerous hacks and exploits have hit the crypto industry in different dimensions. Some hacking incidents are related to vulnerabilities that hackers discover in cryptographic networks.

Sometimes, some white hat hackers will settle down and get a reward from the protocols. But other hackers will transfer the available money they find from the loopholes on the network.

The hacker, called Riptide on Twitter, has exposed vulnerabilities in smart contracts written in Solidity. Riptide was discovered after scanning the Arbitrum Nitro code a few weeks before its release. The hacker wanted to check the contracts to make sure the update was successful.

A hacker discovered a vulnerability in the Arbitrum L1-L2 bridge

After a full update, Riptide picked up some bugs in the bridge that hampered its smooth operation. Finally, the hacker ran some detailed checks and discovered a delay in the bridge’s incoming mail sequence.

According to Riptide, a user can sign and post an L1 transaction to the Arbitrum Chain’s deferred inbox to send a message to the Sequencer. This process is mainly applicable when using a bridge to deposit ETH or other tokens.

By re-examining the nodes, the hacker acknowledged that there was a serious vulnerability in the contract. Riptide notes that the inbox organizer has a flaw in which he or a lousy actor can steal millions of dollars.

Before they are noticed, they can transfer the ETH deposits coming from L1 to the L2 bridge back to their wallets.

Upon its discovery, Riptide reported the vulnerability to Arbitrum and requested a reward of just 400 ETH. However, the movie surprised Arbitrum because they had already offered a maximum of $2 million to the hacker.

Whitespace encryption and hacking

The crypto space has faced many hacks. Such hacks on different platforms are related to the discovery of potential vulnerabilities in network or code smart contracts.

Orchid employee, DeFi VPN protocol, Jay ‘Saurik’ Freeman, mentioned A vulnerability in Optimism, an Ethereum L2 scalability solution. As a result, the protocol rewarded Freeman for $2 million.

Arbitrum pays the hacker a huge reward for fixing the bugs
Ethereum price is rising on the l chart Source: ETHUSDT on

Also, Coinbase broke up with $250,000 from a hacker known as ‘Alpha Tree’ in mid-February. The hacker discovered a vulnerability in the “advanced trading” feature of the cryptocurrency exchange and saved about a billion dollars in losses. Coinbase has stated that paying has been the most massive reward in its history.

Remember that in March 2022, Arbitrum suffered a hacking attack and lost over 100 NFTs from TreasureDAO. The tokens were worth about $1.4 million at the time of the crash.

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