How much was lost in the Lottery Swap hack?

The Lottery Swap hack resulted in $40K in losses on November 07, 2022.

What attack technique was used in the Lottery Swap exploit?

The Lottery Swap exploit utilized Rugpull. Understanding this attack vector is critical for smart contract auditors and developers building secure DeFi protocols.

How can developers prevent similar smart contract attacks?

Preventing smart contract hacks requires a combination of secure coding practices, thorough security audits, and understanding common attack vectors like reentrancy, oracle manipulation, and access control flaws. Smart Contract Hacking (SCH) provides hands-on training to help developers and auditors identify and prevent vulnerabilities before deployment.

Lottery Swap Hack

TOTAL LOST $40K

Low Nov 07, 2022 Rugpull

Affected Chain 2022 Incident surface

Recovered - No recovery reported

All-Time Rank #1767 By amount stolen

Protocol Type Exit Scam/Rugpull Target category

Incident Overview

Quick Summary

Lottery Swap was rugpulled by the initial token holder. The scammer drained 82,646 $USD from the liquidity pool.

Details of the Exploit

Lottery Swap is a BEP20 token trading on PancakeSwap. The token deployer sent $LOTTO token to the multiple EOA addresses in the single transaction. Then one of the receivers drained the liquidity from PancakePool and gained 82,646 $USD.

40,000 $USD from the stolen funds were transferred to another EOA address, and the rest was used to add liquidity to the pool again.

Block Data Reference

Scammer address:

https://bscscan.com/address/0x0812f452…d248a4

Token distribution transaction:

https://bscscan.com/tx/0x94432e28…ccb4fc

Token transfer transaction:

https://bscscan.com/tx/0xc31da312…3a794a

Incident Report

Protocol / Project Lottery Swap

Date of Incident November 07, 2022

Attack Technique Rugpull

Classification Token

Primary Source View Post-Mortem

Protocol Information

Protocol Type Exit Scam/Rugpull

Affected Token LOTTO

Team Anonymous

Source Code Verified On-Chain

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.

Technical Knowledge Deep understanding of rugpull and Solidity and EVM internals

Capital Required Seed capital to cover gas and initial position setup

On-Chain Access Ability to interact with smart contracts and deploy a custom exploit contract

Protocol Analysis Identification of the exploitable vulnerability in Lottery Swap's contract logic - root cause: token

Execution Speed Precise transaction ordering and timing to exploit the vulnerability within a single atomic block

Obfuscation Plan A strategy to launder and move stolen funds - typically through mixers, cross-chain bridges, or decentralized DEX swaps to resist tracing

What Auditors Should Check

Could this have been caught in audit? Hard to catch — private key / OpSec failures are outside smart contract audit scope

If you're auditing a protocol with similar architecture to Lottery Swap, these are the critical security checks that could have prevented this incident (November 2022).

Verify all logic paths related to Rugpull are guarded by proper access controls and input validation
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.

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Sources & References

01
Source 1 https://twitter.com/CertiKAlert/status/1589692538168004610

Threat Assessment

Severity Level

LOW

Attack Vector Rugpull
Root Cause Token
Year 2022

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