Decentralized fundraising platform, Poolz, recently faced a security incident where a hacker exploited the token contract for the POOLZ vesting system, resulting in some tokens being illicitly obtained and sold. However, the company’s quick response helped contain the damage, preventing further loss to users.
According to a report, hackers stole around $390,000 worth of Poolz token on the Binance Smart Chain and Polygon, PeckShield spotted on Wednesday. The blockchain security firm mentioned that the hack could have occurred due to ‘a classic arithmetic overflow issue’.
Poolz had the hacker’s address flagged on blockchain explorers, removed remaining liquidity from Uniswap and Pancakeswap, and began designing a new platform token, POOLX, which is currently being audited.
To strengthen the platform’s security, a fundraiser campaign was initiated and $600K was raised within 12 hours.
“Our top priority is our community, and we’re committed to providing them with a secure and reliable platform for decentralized finance,” Poolz Founder Liam Cohen said.
Liam said: “Despite this setback, we’ll come out stronger with our new token, POOLX, which is currently undergoing an audit.
“Our treasury is unaffected, and we remain financially stable. We’re dedicated to our community and DeFi and we thank you for your support,” Liam added.
Poolz mentioned in a press statement shared with AlexaBlockchain that POOLZ holders will be compensated 1:1 with the new POOLX token once the new contract for the POOLX token has been deployed, and new liquidity pools will be established.
The company is also developing a compensation model for its community as part of the distribution of POOLX.
Poolz aims to be a multi-chain platform and currently allows users to participate in IDOs and NFT sales on Ethereum, BNB Chain, Polygon, Celo, and Avalanche.
The company is committed to providing its community with a secure and reliable platform for decentralized finance and is dedicated to DeFi’s growth. Despite the setback, the company said that it remains financially stable, with an unaffected treasury.