Gamma Strategies Launches Investigation into Security Incident Following Exploit Draining Over 211.9 ETH

cryptonews.com:

The Ethereum-based asset management protocol, Gamma Strategies, is currently investigating an ongoing security incident that may have resulted in the depletion of at least 211.9 Ether (ETH).

We're monitoring and reacting to a possible security incident. Please be patient while we take security precautions to assess the issue. If you needwith draw our front end is still up at https://t.co/p5JwV003JJ

— Gamma (@GammaStrategies) January 4, 2024

On January 4, the blockchain investigator PeckShield detected an exploit linked to Gamma Strategies with an estimated value of approximately $469,000.

Shortly after, the DeFi platform confirmed a “possible security incident” but reassured users that fund withdrawals remained possible. The protocol is investigating the incident, and it has promised to provide further details once the investigation is complete.

In response to the ongoing incident, Gamma Strategies has taken immediate action to prevent further losses. The team has disabled deposits in all public DeFi vaults while ensuring that withdrawals remain active for users who need to access their funds.

Despite the incident, the protocol’s vaults will continue to be managed normally for the time being. However, deposits have been temporarily shut down until the team identifies and mitigates the problem.

However, analysts from the security firm BlockSec reported a critical vulnerability in the protocol’s accounting mechanism, specifically citing an inconsistency between the accounting mechanisms used by Gamma Strategies for depositing and withdrawing.

This inconsistency results in a discrepancy between liquidity and shares, allowing the attacker to withdraw an excessive amount of tokens.

Additionally, during the confusion surrounding the