In light of the recent security breach that affected Curve Finance’s CRV token, South Korean-based cryptocurrency exchange Upbit has announced a temporary suspension of deposits and withdrawals for the token.
Upbit Advises Caution Amid Volatility
Upbit’s precautionary suspension of all CRV deposits and withdrawals occurred after a reentrancy attack on the Curve Finance platform. The vulnerability was discovered during the weekend, leading to a significant loss of funds.
A reentrancy attack is a security breach that causes a potential loss of funds from uninterrupted contract calls. Major outflows were recorded as a result of interactions that manipulated the reentrancy vulnerability in certain Vyper compiler versions. In a tweet released by Vyper, specific versions of Vyper, such as 0.2.15, 0.2.16, and 0.3.0, were vulnerable to malfunctioning reentrancy locks.
In response to the attacks, Upbit released a volatility warning advising their customers “…to be mindful of the increased price volatility of CRV.” The platform called for caution, asking users to conduct due diligence while considering any investment connected to the token. To ensure safety, the platform noted that it would temporarily suspend its CRV deposit and withdrawals.
Following the attack, other cryptocurrency exchanges, like OKX, issued warnings to…
