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Statemind saving crypto companies $350M shows industry why blockchain audits matter

11 Sep, 20223 min readBlockchain
Statemind saving crypto companies $350M shows industry why blockchain audits matter

Over the last several days, a widespread investigation was launched into an anonymous white hat tipster who miraculously saved several top crypto protocols from substantial losses to the tune of $350M and still counting. The community eventually discovered that the hero of the story was blockchain security auditing firm Statemind.

The company is relatively new, yet its impact on the cryptocurrency industry is already being recognized and appreciated in a significant way. The recent situation is also the perfect example of why blockchain auditing firms are so important and can potentially save businesses millions in damages.

Here is everything you need to know about the recent blockchain vulnerability in Avalanche, SushiSwap, Abracadabra, and other protocols. We will also shed some additional light on Statemind itself.

All About The $350M Vulnerability And White Hat Tipster

All across the crypto space, the most popular protocols are regularly bombarded with hackers who search for bugs and other backdoors into the underlying code that can be exploited for personal gain. These advanced hackers know there are millions, even billions, at stake with these blockchain networks across all assets, which makes them a high-value target at all times.

Source code must be immaculate of any vulnerabilities, or else someone will find it. In the recent case with Statemind and a handful of top protocols, the cryptocurrency community was lucky that the blockchain security auditing firm found the critical precompile vulnerability before a nefarious actor did.

Otherwise, the estimated damages would have been more than half a billion dollars, or at minimum, $350 million. Total estimates of damages are still climbing as the situation is fully assessed. Not only did Statemind prevent enormous losses across the crypto community, but they also weren’t even seeking credit for it and delivered a tip anonymously to ImmuneFi.

Statemind Steps Forward After Lengthy Crypto Community Investigation

Not satisfied with not knowing who the tipster was, developers took to the crypto Twitter community and began searching for answers. For the sake of transparency, those impacted began sharing their findings related to the vulnerability on social media and published post-mortems talking about what went wrong.

Eventually, Statemind came forward, and the impacted blockchain developers expressed their deepest gratitude. It has also put Statemind in the spotlight across the crypto industry as both a hero and as a new auditing firm that is clearly worth paying attention to.

👀👀@statemindio came forward as the anonymous whitehat who tipped off the teams involved: Thanks again for all your work to alert the community of the issue! 🫡— Patrick “The Faucet” O'Grady 🔺 (@_patrickogrady) September 8, 2022

Blockchain auditing firms are becoming increasingly necessary as blockchain protocols become more complicated and there is this much money at stake. Regular auditing and code review might come with a cost upfront but can save crypto companies and their users a fortune if and when something goes horribly wrong.

Learn More About Statemind Blockchain Security Auditing is a premier blockchain security auditing company with over 100,000 LoC worth of Solidity and Vyper experience. The company recently came in 14th place in the Paradigm CFT 2022. Clients include LIDO, 1INCH, and Yearn.Finance, and it is easy to see why, after the company was able to save other blockchains and users from loss of funds.

To learn more about or request an audit, visit the official website.

Disclaimer: This is a sponsored post brought to you by Statemine.


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