Industry participants fear Bancor vulnerability resulted in loss of funds

The Decentralized Finance industry might be facing its latest attack, following the vulnerability discovered on the latest version of Bancor network smart contracts. While many Industry participants have feared that Bancor vulnerability possibly led to the loss of funds, the company has said otherwise.

Bancor Network is a decentralized exchange (DEX) protocol. The company recently tweeted that they discovered a vulnerability in its latest version of its smart contracts network, which was launched two days ago. However, Bancor assured customers that all funds held in the network are safe. 

Public claims of lost funds amid Bancor vulnerability

Despite the company’s assurance, a few industry experts opined that the Bancor vulnerability might have resulted in the exploitation of funds. While commenting on the development, Stephen Cole, cryptocurrency investors noted in a tweet: 

Last week Coinbase announced they’re considering adding support for Bancor. This week hackers are exploiting a vulnerability in Bancor to steal funds from users.

According to Hex Capital, the company tried to white-hat drain their user funds just before bad actors can take advantage of the reported Bancor vulnerability. However, he believes they are/were too late in many cases, saying that not all the funds were safe, as the company had claimed. Hex Capital asked:

Looks like a bancor-controlled address drained $460k of at-risk user funds to https://t.co/dkP8i1J7NJ. What is the plan for returning that, and how much user funds were lost to attackers?

— Hex Capital (@Hex_Capital) June 18, 2020

Bancor’s response

As mentioned earlier, the Bancor vulnerability was traced to the smart contracts network upgrade released on June 16. Upon the discovery, the company deployed a white-hat attempt to move all customers’ funds to safety, according to the tweet by Defiprime. Bancor said all smart contracts had been audited, and users’ funds are safe.

Meanwhile, the company also mentioned on its Telegram channel that it deployed a new version of the BancorNetwork contract, which would fix the reported vulnerability.