RocketSwap Hacked for $866,500 Due to Private Key Compromise

RocketSwap Hacked: Private Key Compromise Leads to $866,500 Loss

RocketSwap, the second-largest decentralized exchange on Base, was hacked for approximately $866,500 due to a compromise of their private keys stored on their online servers. The hack was detected by the team, who initially tweeted about an “anomaly” in their DeFi farms. It was later confirmed as a “brute force hack of the server.” The hackers drained the project’s governance token, RCKT, and Wrapped Ethereum (WETH), converting them to approximately 471 ETH. In response, RocketSwap shut down the farm and revoked minting rights for new positions. They have called on the hackers to return the stolen assets. PeckShield, a blockchain security firm, discovered that the hacker used the funds to create a meme coin called LoveRCKT and supplied it with 400 ETH liquidity on Uniswap.

Main Breakdowns:

RocketSwap was hacked for $866,500 due to a compromise of their private keys stored on online servers.
The hack was initially detected as an “anomaly” in the DeFi farms and later confirmed as a “brute force hack of the server.”
Hackers drained the project’s governance token, RCKT, and Wrapped Ethereum (WETH), converting them to approximately 471 ETH.
RocketSwap shut down the farm, revoked minting rights, and called on the hackers to return the stolen assets.
The hacker used the funds to create a meme coin called LoveRCKT and supplied it with 400 ETH liquidity on Uniswap.

Hot Take: The recent hack on RocketSwap highlights the vulnerability of decentralized exchanges and the importance of robust security measures. While the team has taken immediate action to address the breach, such incidents can damage user trust and hinder the growth of the DeFi space. It is crucial for crypto projects to prioritize security and implement safeguards to protect user funds.