Binance Detected A Potential Exploit On Uniswap V3, Turned Out To Be A False Positive

  • Binance stated that they have detected a potential exploit on Uniswap V3
  • PeckShield reported this to be a false positive and the protocol is safe

In an interesting turn of events a few hours earlier, the CEO and founder of Binance, the biggest cryptocurrency exchange in the entire world in terms of trading volume, Changpeng Zhao, revealed that his security team has flagged a potential exploit of Uniswap V3 on Ethereum blockchain.

Uniswap is a decentralized exchange on the Ethereum blockchain which boasts more than $1 trillion lifetime trading volume.

“Our threat intel detected a potential exploit on Uniswap V3 on the ETH blockchain. The hacker has stolen 4295 ETH so far, and they are being laundered through Tornado Cash.”

said Zhao.

Furthermore, he also stated that Binance is willing to cooperate with Uniswap to deal with the issue and offered a helping hand.

Changpeng Zhao pointed out this withdrawal address as the culprit behind the incident adding that they listed UNI without contacting directly with the team and “this is where it would have been useful.”

However, it turns out that this was a false positive and the warning issued by Binance seemed to be wrong. Uniswap V3 was safe and there was no breach in the network or the decentralized exchange.

According to blockchain security firm PeckShield, which has earned the reputation of pointing out multiple scams and security breaches in the world of crypto, contrary to the warning from Binance, Uniswap V3 hasn’t been breached.

The transaction that Zhao pointed out in his Twitter post was the transactions are normal operations on collecting fees and withdrawing the liquidity of positions of 260876 and 264378.

Reaction towards Binance

Binance founder received a lot of heat from the crypto Twitter for flagging out a exploit without confirming from the team first. When asked if they don’t have a direct line of communication with Uniswap, the founder stated that he had “never had to talk to them” since its “decentralized” and the “grandfather for DeFi.”

Interestingly, Sam Sun, Research Partner and the Head of Security at Paradigm, pointed out this was more of a “very successful phishing campaign.”

Parth Dubey Verified

A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.

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