Wasabi Protocol hit by multi-chain attack after admin key compromise: Reports

Wasabi Protocol, a decentralized finance platform designed for leveraged trading of long-tail assets like meme coins and NFTs, on Thursday was hit by an admin key compromise that drained liquidity pools across Ethereum, Base, Berachain and Blast, as flagged by blockchain security firm Blockaid.

The attacker used the protocol’s own deployer key to push a malicious contract upgrade, emptying vault balances in the process. All Wasabi LP tokens should be treated as worthless, Blockaid said, advising users to revoke any active approvals to the protocol’s vault contracts immediately.

Blockchain security firm PeckShield assessed the losses at upwards of $5 million.

Wasabi has reported that it is aware of the problem and is actively looking into it. In the meantime, users have been urged not to engage with its contracts as a safety precaution. The team said that further information would be shared once it becomes available.