FinNexus Contract Deployer Exploited, Sending Token in a -90% Spiral

Twitter user Igor Igamberdiev is famous for his investigative research in the past, including the ValueDeFi contract exploit. He was the first to report a contract deployer exploit on the FinNexus platform.

By
Wilfred Victor
on
May 17, 2021
Category:
BSC News

FinNexus Exploit

A Tweet by Igor, who goes by the username FrankResearcher, was the earliest warning sign about a possible FinNexus code exploit. It hinted at a possible rugpull or a “stolen private key,” outlining a timeline of the event as well as a screenshot of the exploit transaction.


According to Igor, here are event as analyzed:

  • FinNexus (FNX) contract deployer changed the token owner to some address on Ethereum and BSC.
  • This address minted:
  • 323M FNX ($6M) on Ethereum
  • 60M FNX ($1.6M) on BSC and started dumping tokens.

Another user James Rozelle in confirmation to the FrankResearcher Tweet, alleges a transfer of owners resulted in a minting of 300m FNX tokens. The tokens were sold on the openmarket on Uniswap and Sushiswap, transferred to a new wallet, and converted to ETH/WBTC.


FinNexus Response

In what looks like a confirmation of the exploit, FinNexus have released a Tweet advising users to pull funds from the pool as they investigate the situation appropriately.

The Tweet does not appear hopeful to users as the team has confirmed the hack in an earlier Tweet separately.


Market Response

The token has dumped massively, 91% since the news according to coin data platform Coingecko. While not unexpected, this leaves a trail of lost funds, broken dreams, and more work to be done on DeFi smart contracts. 

FNX on Coingecko


Rugpull or Stolen Funds

This event once again begs the question; code exploits done out of mere Dev team mistakes? Is this a rugpull event as a case of stolen funds from the team, or just another hack event in the blockchain?

These situations may not be far-fetched from the recent prevailing rugpull cases ongoing on the BSC blockchain. The community is hopeful on a thorough breakdown and analysis of what went down.


About FinNexus

FinNexus prides itself as the most versatile options platform built on the blockchain. They have recently gone multichain with the inclusion of the Binance Smart Chain (BSC) network in a recent move to serve the DeFi community. 

FinNexus

Its earlier stance on the protection of its users’ funds may have now been defeated. However, it is strongly advised that users thread carefully with DeFi components and tools as scam/rugpull/hacks are still very much prevalent in the DeFi ecosystem.


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Wilfred Victor

Ace finds himself as a blockchain enthusiast who is focused on growing with the entire crypto sector. He is an energetic and passionate writer who believes that all things are achievable.

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