The platform for the release of synthetic assets using the blockchain of Ethereum Synthetix was attacked, which resulted in the seized 37 million sETH stolen, The Block reports. Estimating the value of these assets is problematic due to their low liquidity in the secondary market.
There has been an incident with the price feed of sKRW, we are currently investigating the root cause, but during the time when the price feed was returning the wrong value we believe an automated arb bot converted into sKRW and then into sETH.
CEO and Co-Founder, Synthetix
Warwick asked the bot owners to contact the platform to help eliminate the vulnerability and offered a reward. According to information from the Synthetix Discord channel, the team has full control over smart contracts and does not intend to resume transfers in the system until the problem is resolved.
According to The Block analyst Theo Leibowitz, the advantages of Synthetix are leveled by the vulnerability of the mechanisms for ensuring the value of synthetic products produced using the platform, which makes its users at significant risk. "The irony of this situation is that the currently suboptimal design of the Synthetix platform makes it's actually very difficult to realize gains from this kind of attack", he said
sETH is a synthetic version of Ethereum in the Synthetix system and can be used for trading on the project's stock exchange. The platform uses its own token SNX, which is necessary for the release of synthetic assets based on it.