$PAID, the native token of PAID Network, lost 2,040 ETH in less than an hour last week. Due to what many believed was a rug pull exploit.
More than 59 million tokens were minted and sold through Uniswap. Resulting in the price dropping by more than 80% in mere minutes.
According to Twitter user @WARONRUGS, it appears PAID Network has been able to recover roughly half of the ETH stolen.
“It looks like $PAID recovered 659 ETH on v1 during the “hack” but only added ~335 ETH back on v2. So on top of the 2040 ETH stolen, they added even less back to v2. Of course none of this is locked. What are you going to do with the 323 ETH left?”
PAID Network is one of the most popular Initial DEX Offerings in the crypto community. It took place on Polkastarter’s platform some time ago and has brought outstanding returns to private sales investors.
Following the hack, $PAID released a statement. “We are investigating the issue. We pulled liquidity, are creating a new smart contract, & will be restoring everyone’s original balances to before the hack.
“Those with staked, Lpool & UniFarm $PAID will have their tokens be sent to them manually.” They have since expanded the attack in a blog post on their official website.
Was PAID Network’s smart contract hacked?
PAID Network confirmed that their smart contract code remains secure. The attacker instead exploited an old compromised private key to access the smart contract, not a vulnerability in the smart contract itself.
Neither the PAID dApp nor PAID Ignition platform were affected in any way. “The Ignition platform swap contracts are created for each project and have nothing to do with the PAID token other than checking the balance of this token.”
PAID Network will fix the problem by launching PAID v2 contracts and minting PAID v2 tokens. Effectively invalidating the attacker’s mint. PAID v1 tokens will be phased out of use when PAID v2 tokens are airdropped.