Chainflip Hit by Attack, 736,442 USDT Stolen, Recovery Expected Around Monday

Odaily reports: Cross-chain protocol Chainflip has disclosed that an attack targeting Tron USDT occurred yesterday. It has been confirmed that 736,442.17 USDT was stolen through 6 unauthorized payments, while another 115,654.41 USDT in user swaps remained in the vault due to failed payments. All other funds were unaffected.

Chainflip stated that the attacker exploited a vulnerability in the Tron transaction memo mechanism by attaching custom memos to transactions already signed by validators, causing the system to identify the same deposit as separate swaps and issue refunds again, ultimately resulting in duplicate payments. The attacker carried out 8 operations over approximately 90 minutes, gradually increasing the amounts. Chainflip said it has completed a fix and has flagged the stolen funds to relevant authorities in an attempt to recover them. The protocol is expected to resume operations as early as Monday and will be responsible for compensating affected users for their losses.