The Dogechain team stressed that despite the “unnecessary money printing”, it did not cause any loss of funds. The critical error could have destroyed the reputation of SHIB, DOGE or meme coins.
Critical error in Dogechain, is SHIB listed?
Dogechain abruptly halted operations after developers detected a critical error in the project’s bridge contracts. Transactions were at risk of an exploit over the weekend. The developers of the project detected a bug on September 10. They then paused block building for a few hours. On September 11, the development team said that the network is live once again with ongoing maintenance. The bug allowed attackers to print freely wrapped DOGE (wDOGE) on the bridge network. Inflation could have had devastating consequences…
https://twitter.com/DogechainFamily/status/1569026761383624704
The project said the fact that its network is currently working on a Proof-of-Authority (PoA) consensus mechanism allows the team to reverse “unnecessary wDOGE printing.” He added that the team will remain covered by the PoA until it is fully ready for the transition to Proof-of-State (PoS) consensus.
Dogechain stated that the issue is related to “internal error” rather than “exploitation or hacking”. The team assured the public that no Dogecoin (DOGE) was lost or stolen. He added that no “internal funds” were lost, possibly referring to Dogechain (DC) and bundled Doge (wDOGE) tokens.
Some sources claim that Dogechain is really losing money
The independent crypto researcher said the attacker exploited the vulnerability to print 9.7 million wDOGE ($600,000). The alleged attacker turned $36,000 into other assets. Some of these funds may have been deposited with Binance. Dogechain denies theft, with contributor Roc Zacharias. He stated that the project was “not an internal bug and hack.”
No money wasted. Nothing is bridged [or] lost as you suggest here.
Incorrect. We had internal bug, no hack. It’s almost fixed. No funds lost. Nothing bridged out/lost like you’ve suggested here. The chain is still in its infancy and will have many changes before it reaches its final form with our POS Mainnet. This is still POA “Chained Mainnet”
— Roc Zacharias (@CryptoRocky) September 11, 2022
Despite these denials, we see that an address starting with 0x78F05… has been blacklisted by Dogechain. Additionally, Dogechain’s official events account hints that funds were minted without permission at some point, even if this mint was reversed. These facts do not confirm that an attacker has successfully stolen. However, it seems that a person has made transactions that can lead to loss of funds.
Are SHIB, DOGE and other meme tokens endangered?
It should be emphasized that the vulnerability affects Dogechain, not Dogecoin. The two projects have no official relationship. Dogechain aims to build a Layer 2 network that allows bridged Dogecoin tokens to be used in new applications such as decentralized exchanges and NFT markets.
Also, the vulnerability described above is completely unrelated to a data leak that recently impacted another popular dog-themed blockchain project, the Shiba Inu token. As you follow on Kriptokoin.com, the market is already struggling with the Fed’s statements.
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