Transit Swap Hacked, Bitrace Helps Recover Losses

In the early hours of October 2, 2022, the on-chain swap protocol Transit Swap was hacked, resulting in the illegal theft of over $25 million worth of cryptocurrencies from multiple user wallets, causing widespread panic in the crypto community. The Bitrace team immediately intervened and collaborated with the official investigation.

The investigation revealed that the hack occurred due to a vulnerability in Transit Swap’s core code, which allowed the hacker to exploit unlimited authorization to access users’ assets, leading to the mass transfer and consolidation of funds. In addition to the large scale of victims and stolen funds, some of the addresses directly involved in the attack were particularly notable, as there were frontrunners and copycat attackers among the perpetrators.

The Bitrace team assisted Transit in identifying the hacker’s IP, email addresses, and related on-chain addresses, successfully recovering over 80% of the losses.