On Saturday, January 18th, Bitfinding's Exploit Interception Agent deployed counter measures in just 3.2 seconds, detecting, halting, and intercepting an exploit targeting Paribus.io on Arbitrum.

On Saturday, January 18th, Bitfinding's Exploit Interception Agent deployed counter measures in just 3.2 seconds, detecting, halting, and intercepting an exploit targeting Paribus.io on Arbitrum.

The Attack Unfolds

Our systems detected unusual activity on the Arbitrum network. An attacker was attempting to exploit a vulnerability in Paribus's lending platform, leveraging price manipulation and a bug to siphon funds. The initial target was ~$60K in assets, including ETH, USDT, and ARB tokens.

We also identified additional funds at risk on Ethereum Mainnet, bringing the total potential loss to ~$86K USD.

Cross-Chain Risks Averted

This incident highlights the growing threat of cross-chain exploits, where attackers target multiple networks simultaneously. Our ability to monitor and respond across chains was critical in mitigating the damage.

By collaborating with the Paribus team and leveraging our real-time monitoring tools, we ensured that no further funds were lost.

💡 Pro Tip:
Prevent firefights by investing in security audits and real-time monitoring solutions. Hardening your defenses today can save you from costly exploits tomorrow.

Timeline

Our Exploit Interception Agent deployed a counter measure in just 3.2 seconds. UTC Timeline.

2025-01-18 11:44:58 - Attacker deploys an exploit contract

2025-01-18 11:45:01 - Interception Agent identifies and reconstructs the attack

2025-01-18 11:45:05 - The rescue transaction lands in the blockchain

2025-01-18 14:39:00 - SEAL ticket opened after failing to get in touch with Paribus

2025-01-18 16:18:00 - Paribus security contact reached (thanks @pcaversaccio)

2025-01-18 16:53:00 - Vulnerable contracts in Ethereum are paused

2025-01-19 16:29:30 - 100% of rescued funds are returned to the Paribus team

Conclusion

At Bitfinding, we're proud to have turned another potential disaster into a success story. This incident underscores our commitment to protecting our partners and their users, no matter the scale or complexity of the threat

If you're a DeFi project or crypto user, don't wait for an attack to happen. Reach out to us today to learn how we can help you secure your assets.