SushiSwap Loses Over $3 Million Due to Smart Contract Bug

On April 9, several security reports on Twitter revealed that a bug in a smart contract on the decentralized finance (DeFi) protocol SushiSwap led to losses of over $3 million. According to CertiK Alert and Peckshield, blockchain security companies, the bug occurred in the approval function in Sushi's Router Processor 2 contract.

Timeline of Sushiswap

In the wee hours of April 9, a bug in a smart contract on the decentralized finance (DeFi) protocol SushiSwap led to losses amounting to over $3 million, according to security reports on Twitter from blockchain security firms CertiK Alert and Peckshield. It seems the @SushiSwap RouterProcessor2 contact has an approve-related bug, which leads to the loss of >$3.3M loss (about 1800 eth) from @0xSifu.

A smart contract bug in the popular decentralized exchange SushiSwap has led to the theft of about $3.3 million in Ethereum (ETH). According to the crypto analytics firm PeckShield, the bug is connected to the contract approval process and is related to an update that was implemented a few weeks ago.

In a recent fraud, the SushiSwap RouterProcessor2 contact has been discovered to have an approve-related bug. This flaw has resulted in the loss of over $3.3 million (roughly 1800 ETH) from 0xSifu.

Jared Grey, head chef of Japan-based DAO, Sushi, stated that no one associated with Sushi has violated U.S. federal security laws in response to a subpoena from the SEC. Grey is cooperating with the SEC and stated that it is unknown whether further subpoenas will be issued to others linked with Sushi.

On 9 April, numerous reports surfaced about a bug in a SushiSwap [SUSHI] feature that had already caused the loss of millions of dollars. Jared Gray, the CEO of SushiSwap, later verified the report and outlined the necessary measures to rectify the situation.

Sushi DAO's head chef, Jared Grey, has released a statement addressing the subpoena served against himself and the protocol by the United States Securities and Exchange Commission (SEC).

A critical vulnerability has been identified in the DeFi protocol Sushi's exchange services, with the exploit involving the ‘RouterProcessor2' contract used for trade routing on the SushiSwap exchange. The bug, first flagged by security firm PeckShield, has resulted in a loss of over $3.

Sushi's head chef Jared Grey and his counsel described the investigation as a “non-public, fact-finding inquiry,” that doesn't suggest the SEC has “any negative opinion of any person, entity or asset" related to the DAO.

Sushi Head Chef Jared Grey's statement on the SEC's non-public investigation into Sushi's compliance with federal securities laws. Grey can only produce documents in his possession, custody, or control.

In a series of tweets today, SushiSwap's "head chef" revealed that the project recently deployed concentrated liquidity and Version 3  contracts ahead of the official announcement. The tweets also provided insight into how SushiSwap intends to leverage its multi-network and cross-chain infrastructure to boost the adoption of its platform across nearly 30 networks, with more integrations in the pipeline.