Incident Overview
Layer2DAO investing platform was exploited. The hacker compromised the private key of the multi-sig wallet and stole roughly 50,000,000 $L2DAO tokens.
Layer2DAO is a decentralized investment and staking platform running on the Optimistic chain. The project's multi-sig wallet was compromised. The attacker was able to steal 49,950,000 $L2DAO tokens.
With the effort of the project's team, 31,239,611 $L2DAO tokens were repurchased to secure the token's price. Although, the token price dropped by more than 36% over the last 24 hours. The hacker profited for 71,119 $USD.
Incident Report
Protocol Information
Market Context at Time of Hack
What the Attacker Needed to Succeed
Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.
What Auditors Should Check
If you're auditing a protocol with similar architecture to Layer2DAO, these are the critical security checks that could have prevented this incident (October 2022).
- Verify all logic paths related to Access Control are guarded by proper access controls and input validation - see the Access Control Attacks attack class for patterns
- Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs
Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.
Free TrialFunds Recovery
Recovered
$119K
Net Loss
71198
Related Attack Classes
The technique used in this hack maps to these vulnerability classes in our security curriculum:
Sources & References
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