Liquidity Management Protocol Visor Got Hacked, Price Crashed 95%

Liquidity management protocol Visor got hacked and the attack destroyed the value of the native token by 95% as we are reading more today in our cryptocurrency latest news.

Visor is a Liquidity Management Protocol and it is a Uniswap-based protocol specializing in NFT smart values but got hacked and the attackers withdrew 8.8 million vVISR tokens. The Visor team seems to be addressing the issue but the token’s price collapsed in the aftermath. Visor Finance called attention to the exploit over Twitter and the hack targeted teh vVISR staking contract. The flaws in the contract hid a re-entry hack to double mint vVISR tokens alongside others allowing the tokens to be freely and limitlessly minted.

The protocol stated that no positions of users are at risk from the exploit and that the affected VISR stakers will be restored. Shortly after, the team announced that it will implement a “token migration” based on the state of the protocol’s pre-exploit. They said:

“Trades subsequent to the vVISR exploit will not affect your redeemable amount.”

The exploit dealt some damage to the VISR token price and according to the CoinMarketCap,t eh token hovered at $0.92 before collapsing to $0.03 before noon. The trading volume tripled in the timeframe after the hacker sold the tokens via Uniswap. He also used Tornado cash as a non-custodial privacy protocol built on Ethereum to hide the identity. Tornado was also used by the SquidGame Token scammers earlier in October to escape with their stolen funds and not be found. This is not the first time that visor experienced a huge hack. Back in June, more than $500 million was stolen from the network.

Defi hacks and scams were rampant in crypto this year. We reported that bent Finance also got exploited and it is now suspected of committing a deliberate rug pull. The staking platform disabled rewards claims and Peckshield even said that the hacked transactions were conducted by the Bent Finance deployer. The biggest Defi hacks of this year happened in august when $600 million worth of crypto were stolen from multiple networks like Polygon, Binance Smart Chain, and Ethereum which resulted in one of the greatest hacks in the history of crypto.