The crypto and NFT staking platform ParaSpace experienced an attempted exploit that put $5 million at risk, according to various reports on March 17.
ParaSpace confirms vulnerability
ParaSpace acknowledged an attack on its contracts early in the day. It paused its protocol and later said it had found the cause of the exploit.
The project additionally stated that all user funds, including NFTs were safe. ParaSpace lost 50 to 150 ETH (less than $270,000) due to price slippage during the attack and the recovery. ParaSpace said it will cover those protocol losses. Furthermore, it said that it will provide a 5% bounty to BlockSec, which informed it of the issue.
When asked about past audits, ParaSpace admitted that the issue existed despite nine audits from multiple companies — some of which occurred just months ago.
ParaSpace said it is patching the issue and noted that the protocol pause will remain until further audits. Though ParaSpace has not announced a reactivation time, it has added another limitation: large withdrawals will be time-locked.
BlockSec intercepted attacker