Binance detects $3.5M attack on Uniswap; Details

Sahana Kiran
Source – Unsplash

Hacks and attacks have become part and parcel of the crypto-verse. While these attacks can be executed in several ways, the motive remains the same. The world’s largest exchange, Binance, took out its detective glasses and discovered that the Uniswap V3 liquidity pool was compromised. Changpeng Zhao, the CEO of Binance, took to Twitter and revealed the same.

In the tweet, CZ alerted the network that a hacker had stolen 4295 ETH. In addition, the hacker had already started laundering the stolen funds through Tornado Cash.

Things took a different turn as this attack was confirmed to be phishing. The Binance CEO reportedly connected with the Uniswap team and affirmed the same. A security analyst at MetaMask, Harry Denley, through Twitter, elaborated on the course of the attack.

He noted that over 73,399 addresses were sent a malicious token. This was done to target the assets of naive investors who assumed that the tokens were through a UNI airdrop.

While this was categorized as a phishing attack, Binance’s CZ garnered immense backlash.

Binance’s CZ called out for being “irresponsible.”

The community has become somewhat vulnerable to the current market conditions, multiple insolvencies, and hacks. Therefore, CZ’s first tweet about Uniswap being exploited sent shock waves across the industry. Following this, an array of them called out the Binance CEO for scaring the community.


Terra whistleblower, FatMan seemed upset about the whole thing.

“Stupid as f*ck to tweet this out instead of asking the team privately even if it *was* an exploit. The fact that it has nothing to do with the contract (and the Binance team didn’t bother checking this) makes it so much worse.”

Nevertheless, CZ lauded Uniswap for swiftly acting on the same. The Binance CEO even went on to apologize for alarming the community.