According to Cos (Yu Sheng), founder of SlowMist (@evilcos), the root cause of the Drift Protocol hack was its migration one week prior to a 2/5 multisig configuration without a timelock (1 old signer + 4 new signers). The attacker exploited this to seize admin privileges within hours, subsequently minting counterfeit CVT tokens, manipulating oracles, disabling relevant security mechanisms, and ultimately draining all assets from the pool, resulting in losses exceeding $200 million. Cos also urged all DeFi projects to promptly and regularly review extreme risk scenarios in the event of owner/admin private key compromise, and to strengthen alerting and response mechanisms. Users should also clearly understand their exposure to potential fund losses under extreme circumstances (such as internal malfeasance) in any DeFi protocol they participate in, and avoid entering blindly.
Drift Protocol Hacked for Over $200M Due to Multisig Vulnerability, Says TechFlow
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Summary
Drift Protocol suffered a $200 million exploit after attackers bypassed a 2/5 multisignature setup without a timelock. The breach enabled unauthorized minting of CVT tokens, oracle manipulation, and security disablement. A vulnerability report from TechFlow revealed the flaw. Cos (Yuxian) of SlowMist warned that weak multisig configurations invite attacks and urged projects to test extreme scenarios. A protocol update is expected to address the exploit.
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