Reentrancy is a common bug that provides hackers opportunities to trick a smart contract into stealing assets by making repeated calls, or software commands, by making repeated calls to a protocol. The attack was found to be caused due to a faulty Vyper code. The code forms the foundation of several parts of the Curve Finance system.
The affected protocols, including Curve Finance, first offered a bug bounty of 10% to the hacker on 3 August. Though the hacker accepted the offer, they only returned the stolen funds to Alchemix and JPEGd. The JPEG'd DAO confirms receipt of 5,494.4 WETH back to the JPEG'd Multisig for a total of 5,495.4 WETH. A 10% white-hat bounty of 610.6 WETH was awarded to the owner of the address that recovered funds from the pETH exploit.
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