The newly launched XEN Crypto is down 39% in the last 24 hours after a user found a way to mint over 100 million tokens on FTX without paying any gas fees.
Exploit mints over 100 million tokens
According to a report by X-explore, the attacker exploited FTX by implementing a chain attack contract and sending a small amount of ETH to the contract from FTX.
Each transaction created 1-3 subcontracts that performed a MINT or CLAIM XEN function before self-destructing. The FTX hot wallet paid for all these transactions.
The report stated that FTX had lost more than 81 ETH to the gas theft, while the miner had minted more than 100 million XEN tokens. The exploiter is already cashing in, having traded XEN tokens for 61 ETH using decentralized exchanges like Uniswap and Dodo.
Since FTX allows free withdrawals, the attacker incurs no cost for the exploit. There is also no gas transfer limit, meaning the attack could continue for days.
XEN faces an attack from Sybil
X-explore also revealed that XEN crypto was facing a severe sibyl attack.
According to the report, 67,685 Sybil attack addresses (80%) interacted with the platform on October 12. Since the launch of the token, 335,000 Sybil addresses represented 45% of the total participating addresses.
Binance Academy defined a Sybil attack as “a type of security threat on an online system where a person attempts to take over the network by creating multiple accounts, nodes, or computers.”
XEN continues to abuse gas rates
Despite the fact that a miner can mint millions of tokens without paying gas fees, the XEN crypto is still the main consumer of Ethereum gas. According to Etherscan data, the project accounted for approximately 15% of the gas fees paid in the last 24 hours.
XEN had attracted the interest of the crypto community at large thanks to its novel approach to the industry. Activity increased significantly on Ethereum, increasing gas fees and making ETH deflationary for several days.
Meanwhile, the trading volume of XEN crypto has increased by 10%, but its value has plummeted. The token is trading at $0.00009215 on CoinMarketCap. The data shows that it is trading 98% away from its peak value of $3.67.
Posted in: Ethereum, Tokens
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This post XEN cryptocurrencies fell 39% after suffering multiple attacks
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