ParaSwap has initiated the process of returning cryptocurrency to users following the identification of a critical vulnerability in its AugustusV6 smart contract last week. The decentralized finance (DeFi) aggregator has revoked permissions to the compromised contract and has successfully returned assets to wallets that have taken action to safeguard their holdings. White hat hackers played a crucial role in mitigating potential losses, prompting swift action from the ParaSwap team.
In an official statement posted on X on March 24, ParaSwap announced that it had completed the return of assets to affected wallets and had initiated steps to investigate the incident further. Collaboration with blockchain analytics and security firms, including Chainalysis and TRM Labs, is underway to trace the movement of funds and identify the responsible parties.
ParaSwap has also reached out to the identified hacker addresses through on-chain messaging, urging the return of the pilfered funds. If no response is received by March 27, the team intends to pursue legal avenues to recover the assets.
The vulnerability was detected shortly after the launch of the AugustusV6 smart contract, which aimed to enhance token swaps and reduce transfer fees. Despite initial losses estimated at $24,000, ParaSwap’s prompt response and collaboration with ethical hackers helped contain the situation, with the platform temporarily halting its application programming interface (API) to address the issue.
