Bitget Hackers Stung by Chainflip Error, $700K in Stolen Crypto Stranded
A recent Chainflip error stranded around $700,000 in stolen crypto, according to AMLBot, a blockchain compliance firm. The error occurred when two automated transfers sent USD Coin (USDC) and Ether (ETH) to Chainflip deposit channels on the wrong blockchain networks. One transfer sent $267,000 in USDC on Ethereum to a Chainflip channel that existed only on Arbitrum, while the other sent $160 ETH to a Channelflip channel that existed only on Ethereum.
The errors occurred due to a script-driven mistake, with the timing and mirrored nature of the mistakes suggesting a configuration error. The error points to a weakness in automation, where a script that pre-sets deposit addresses can route funds to a destination that never existed on the sending chain.
The stranded amount does not change the scale of the theft, which remains around $387.5 million. AMLBot has been tracing the stolen funds and has identified several cross-chain swap systems that have refused to route the stolen funds through them.