An operational vulnerability in Core DAO’s reward distribution system led to an emergency protocol overhaul. Developers promptly executed a hard fork after discovering that a validator claimed CORE token rewards far exceeding the blockchain’s standard limits.
The Core team later announced that the exploit had been fully contained, confirming that the rogue validator no longer has access to withdraw excess rewards. The emergency update was designed as a forward-looking fix, eliminating the need for developers to roll back blockchain history or cancel confirmed user transactions from earlier blocks.
Exchanges Halt Transactions
The protocol-level fix has not yet reassured crypto exchange operators. Coinbase took decisive action by completely suspending all CORE token sends and receives for its customers.
The caution quickly spread to Asian markets. South Korean exchanges Bithumb and Coinone simultaneously announced suspensions of deposits and withdrawals for the token, explicitly citing concerns over network security and stability as the primary reason for cutting off access.
Transaction halts expanded to other trading platforms for varying reasons. Bitget cited routine wallet maintenance when suspending all deposit and withdrawal options for its users. Meanwhile, LBank opted for a one-way restriction by pausing CORE token deposits into its order books.
Key Details Remain Undisclosed
Despite assurances from developers that the situation is secure, many operational details surrounding the breach remain undisclosed. Core DAO developers did not provide an exact figure for the number of CORE tokens minted without authorization by the validator. They also withheld crucial details regarding how long the excessive minting had been ongoing before triggering network alerts.
The movement of the excess tokens on the open market also remains unclear. The public has yet to receive confirmation on whether the extra coins have entered exchange circulation or remain held in the validator’s wallet. The specific technical vulnerability that enabled the outsized reward claims has also not been detailed to the community.
The Core team has so far only promised to release a post-mortem technical report in the coming days. While awaiting further clarity, CORE holders face indefinite transaction freezes across multiple exchanges - a wave of halts that comes amid rising security incidents across the crypto industry, following a $75 million exploit on the Cronos-based Tectonic protocol just days earlier.
Source: Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
