The majority of crypto users have already heard about the recent Harmony hack through the Horizon Bridge that resulted in a loss of $100M. But did you know that 78M $AAG tokens were retrieved from the hacker and returned back by Lossless?
Here’s everything you need to know about this successful security case – the first of its kind in the crypto industry.
What happened?
The stolen cryptocurrencies with a joint value of $100M were Frax (FRAX), Wrapped Ether (wETH), Aave (AAVE), SushiSwap (SUSHI), Frax Share (FXS), AAG (AAG), Binance USD (BUSD), Dai (DAI), Tether (USDT), Wrapped BTC (wBTC) and USD Coin (USDC).
One of these currencies had the Lossless protocol integration – the industry’s first framework for active exploit mitigation.
It allows hack detection, freezing of stolen assets, and their retrieval back to rightful owners. That cryptocurrency is $AAG which had 84,620,000 tokens stolen. Upon the moment the tokens were seized, their worth was $1.26M.
Until the malicious transaction was spotted the hacker was able to cash out around 6M of the extracted tokens leaving his wallet with the remaining 78M.
But on June 24, 2022 at 5:35 AM UTC, the hack was reported on the Lossless protocol platform and the 78M $AAG tokens were effectively frozen for a period of 24 hours. Here are the report details.
How the Lossless protocol allows hack prevention
When a report is generated on the platform of Lossless, its investigation is triggered which is conducted by the Decision-Making Body.
It is composed of three parties: the affected token owner, Lossless technical team, and the Security Committee.
The Security Committee is a 9-member integral structure with blockchain industry professionals and key figures on board that provides trusted and unbiased decision-making when investigating reported hacks.
Once the report investigation is finished all three parties then cast a vote on whether the hack is confirmed or not.
That is what they did and validated that the frozen 78M $AAG tokens have been acquired through malicious activity.
This decision immediately allowed the retrieval of the cryptocurrency’s millions – on June 24, 2022 at 3:17 PM UTC they were extracted from the hacker’s wallet and successfully secured.
The tokens are already returned to the owner and the Lossless team is proud to have been able to provide the crypto industry with solid proof of how their protocol is capable of hack prevention as it was designed to do.
The expectation now is that this will bring the spotlight to security in crypto and more projects will prioritize it sooner.
Vygandas Masilionis, CEO of Lossless shared: “This success case is proof that our team is working in the right direction while building solutions for web3 security.
It might be the first prevented hack, but definitely not the last. Which motivates us to continue building our soon upcoming products like the Security Oracle which will help in detecting hacks before they even happen.”
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