Incident Overview
The Reaper Farm protocol was hacked due to the lack of validation checks, as a result of which user funds were withdrawn to the attacker's account.
Reaper is an auto-compounding yield farm that maximizes users' yields by leveraging the power of compound interest.
The Reaper Farm protocol had a lack of validation check, which the attacker took advantage of, stealing $1.7M.
The attacker created a smart contract (https://ftmscan.com/tx/0xe7635f32…bdc607 ) which was used to withdraw funds from the protocol to the attacker address (B).
Example transactions:
1) https://ftmscan.com/tx/0xc929f3b9…53c9d5
2) https://ftmscan.com/tx/0x24770e10…7a57e9
3) https://ftmscan.com/tx/0x7f79934a…8e3754
Full list of transactions: https://ftmscan.com/token/0x04068da6…5d5b75?a=0x2c177d20…9ca954
Then all stolen tokens were bridged from FTM to ETH.
Example transactions:
1) https://ftmscan.com/tx/0x2fa4eb18…0a8913
2) https://ftmscan.com/tx/0x345b6f91…9d5504
3) https://ftmscan.com/tx/0x551f875e…a12e9d
Then all funds were laundered via Tornado.Cash.
Attacker addresses:
(FTM) scammer address(A): https://ftmscan.com/address/0x5636e55e…bb527a
(FTM) scammer address(B): https://ftmscan.com/address/0x2c177d20…9ca954
(ETH) scammer address(B): https://etherscan.io/address/0x2c177d20…9ca954
Attacker's contract address: https://ftmscan.com/address/0x8162a5e1…4d0145
Incident Report
Protocol Information
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 Reaper Farm, these are the critical security checks that could have prevented this incident (August 2022).
- Verify all logic paths related to Other 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.
Free TrialSecurity Audit History
- Solidity Finance Report
Sources & References
Learn to Prevent the Next Reaper Farm
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