Blocksec Rescues ParaSpace Protocol, Retained $2.9M ETH

Blocksec: The NFT lending project ParaSpace recently noticed a suspicious transaction and paused the entire protocol. It was soon determined that the transaction was part of an attack on the ParaSpace protocol. The attacker used a pool-based money market to access cash and profits without selling their assets. ParaSpace detected the attack and estimated it impacted 2900 ETH worth around $2.9 million.

Blocksec: Details of the Attack on ParaSpace

The ParaSpace protocol is a crypto-asset management platform that provides users access to cash and profits without selling their assets. It uses a pool-based money market to connect borrowers and lenders in a decentralized collateralized loan system.

Unfortunately, a malicious actor began taking advantage of this system by attempting to exploit a loophole that could have compromised the entire protocol. It caused an interruption in the system, which immediately put all user funds at risk.

ParaSpace and Blocksec Uncovering the Attack

Fortunately, ParaSpace was able to detect the attack in time and was able to contact Blocksec, a security firm specializing in blockchain technology and decentralized finance. After analyzing the situation, Blocksec determined that the attack exploited a vulnerability in the ParaSpace protocol, and Blocksec quickly blocked the attacker’s access and prevented further damage.

Blocksec’s Successful Rescue of ParaSpace Protocol

With the help of Blocksec, ParaSpace was able to rescue the protocol from the attack successfully. As a result, all funds have been secured, and transactions have resumed as normal. Blocksec has also identified the attacker and is engaging with them for restitution.

This attack on the ParaSpace protocol highlights the importance of security in decentralized finance projects. It is a reminder of the need for security firms such as Blocksec to ensure that protocols remain secure and safe. The successful rescue of the ParaSpace protocol is a testament to the effectiveness of Blocksec’s security efforts. With Blocksec’s help, ParaSpace can continue its operations without significant disruptions.

Blocksec prevented a malicious actor from exploiting the ParaSpace protocol, saving 2900 ETH. ParaSpace has since announced that it will partner with Immunefi to offer rewards for white hat hackers who can find and patch any future vulnerabilities. Additionally, they will introduce a new set of protocols to ensure that all transactions remain secure.