In a significant win for blockchain security, BlockSec has prevented a potential loss of $5 million to a hacker who attempted to exploit a vulnerability in the NFT project, Paraspace. As per sources, the innovative contract audit firm detected the hack in real-time, enabling the rescue of the funds before the attack was executed. After the hacker failed to attack due to low gas fees, BlockSec attacked a white hat and seized power of the assets, worth 2,900 ether, notifying Paraspace of their return.
Paraspace has temporarily stopped its lending system to examine a problem. Nevertheless, the platform has assured that NFT purchases deposited on it are secure. However, due to a vulnerability in the lending contracts, the hacker could borrow crypto tickets with short NFT collateral, which may have led to the depletion of the platform’s liquidity. This vulnerability allowed the attacker to adjust the balance of the loan collateral on Paraspace as explained by Matthew Jiang, director of security services at BlockSec.
BlockSec was able to thwart the hack using its real-time monitoring system, which can detect hacking incidents and automatically prevent them. According to Lei Wu, co-founder and CTO of BlockSec, the company’s internal system was critical in preventing the attack.
Interestingly, this is not the first time BlockSec has saved project funds. For example, in April 2022, BlockSec kept $3.8 million from Saddle Finance’s exploiters; in February 2023, it recovered $2.4 million from Platypus Finance hackers.
The Paraspace incident highlights the importance of real-time monitoring systems and the role of intelligent contract audit firms in securing the blockchain ecosystem. This win by BlockSec is another step towards building a safer and more secure blockchain ecosystem.