Umbrella Network Hack

TOTAL LOST $505K
Low Other

Summarize with AI

ChatGPT Perplexity Claude Grok
Affected Chain 2021 Incident surface
Recovered - No recovery reported
All-Time Rank #1000 By amount stolen
Auditors 4 Prior security audits

Incident Overview

The hackers attacked Chainswap’s contracts and stole a little over 3 million $UMB tokens on ETH from the Chainswap vault, which was the entirety of the UMB tokens available there. The hackers also managed to mint an additional 20 million in UMB tokens on the BSC side but did not manage to sell them before all UMB tokens there were frozen.

The transactions the hackers have made:

https://docs.google.com/spreadsheets/d/1KxLpMvhypikrcNph7NAimeFdyPbRK1rrw-6yAcREqa4/edit?usp=sharing

Incident Report

Protocol / Project Umbrella Network
Date of Incident
Attack Technique Other
Classification Other
Primary Source View Post-Mortem #1 View Post-Mortem #2

Protocol Information

Protocol Type Oracle
Affected Token UMB
Official Website umb.network/
Protocol Twitter/X @umbnetwork
Team Anonymous
Source Code Unverified

Market Context at Time of Hack

Token Categories
DeFi Oracles Ethereum Ecosystem Polkastarter Polygon Ecosystem Bounce Launchpad BNB Chain Ecosystem MultiversX Ecosystem
Protocol Links
GitHub

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 other 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 Umbrella Network's contract logic - root cause: other
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? Likely — with a thorough Other audit checklist and test coverage
Audited by Audit Report 1, Audit Report 2, Audit Report 3, Audit Report 4 — still lost $505K. Prior audits don't guarantee safety, especially after post-audit code changes.

If you're auditing a protocol with similar architecture to Umbrella Network, these are the critical security checks that could have prevented this incident (July 2021).

  • 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.

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Security Audit History

Sources & References

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