- FEG token’s SmartBridge exploit resulted in a 99% price drop following unauthorized withdrawals.
- Hacker profited over $1 million by exploiting vulnerability across ETH, Base, and BNB Chain networks.
- BlockSec analysis revealed relayer validation flaw in the SmartBridge system.
- Third major security incident for FEG since 2022, following previous losses of $1.3M and $2M.
- PeckShield identified root cause but has not released official statement.
The Feed Every Gorilla (FEG) token experienced a severe security breach on Sunday, with its price plummeting 99% after an attacker exploited a vulnerability in its cross-chain SmartBridge system. The incident marks the project’s third major security compromise since 2022, resulting in losses exceeding $1 million across multiple blockchain networks.
Anatomy of the Bridge Exploit
Security firm BlockSec’s analysis identified the attack’s mechanics:
- Exploitation of SmartBridge’s relayer validation system
- Creation of fraudulent bridge messages
- Unauthorized token withdrawals across chains
- Immediate liquidation through existing pools
According to Cyvers, the attacker’s profits included 169 ETH and 712 BNB from operations across three networks. The project’s official response initially suggested a vulnerability in their audited wormhole bridge implementation.
Historical Security Challenges
FEG’s security track record shows concerning patterns:
– May 2022: Flash loan attack resulted in $1.3 million loss
– October 2022: Team Finance exploitation led to $2 million loss
The project attempted to enhance security by implementing third-party solutions and liquidity locks after previous incidents. However, these measures proved insufficient against sophisticated attacks targeting cross-chain infrastructure vulnerabilities.
Community reaction remains divided, with some users expressing support for the team’s response while others question the project’s security practices. The incident highlights ongoing challenges in securing cross-chain bridge implementations, a critical component of modern cryptocurrency infrastructure.
PeckShield, which previously audited the system, has indicated their awareness of the root cause but hasn’t released detailed findings. The FEG team continues to investigate the incident while implementing additional security measures.
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