Xen and Sybil Attacks

BlockchainGandalf

English - October 19, 2022 06:57 - 8 minutes - 7.41 MB
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Previous Episode: XEN and the art of cryptocurrency distribution

Next Episode: Ten unmissable and essential insights into entrepreneurship

Well, that didn't take long.

A day after my previous video there was a Sybil attack on the XEN cryptocurrency. Except, the attack was really on an exchange - FTX, which offers free crypto withdrawals, and didn't check the maximum gas it allocates to this.

As a result someone found an arbitrage opportunity. Use smart contracts to spawn off lots of Ethereum addresses, deposit small amounts of ETH in the exchange, then withdraw and in the same transaction claim XEN crypto, with FTX paying for it. A day later, mint the XEN and immediately sell on a DEX.