An Important Message To The Community About The Chainswap Hack

Chainswap was hacked today, and many projects that were partnered with them to bridge tokens between Ethereum and Binance Smart Chain were impacted, including Umbrella Network. We have listed below the current developments, as we understand them, as well as the courses of action Umbrella plans to take in light of this situation.

Chainswap Hack Details

On Saturday July 10th, at around 4pm EST, hackers attacked Chainswap’s contracts and stole the tokens of more than 10 projects, including Umbrella Network, Antimatter, Dafi, Option Room, Blank, Razor, Oro and others.

Hackers stole a little over 3 million $UMB tokens on ETH from the Chainswap vault, which was the entirety of the UMB tokens available there.

We have tracked the transactions the hackers have made, listed here -> https://docs.google.com/spreadsheets/d/1KxLpMvhypikrcNph7NAimeFdyPbRK1rrw-6yAcREqa4/edit?usp=sharing

The listed transactions include 1) All the withdrawals from the Chainswap UMB vault 2) Transfers from the initial wallet to different wallets, and 3) Sales of $UMB on Uniswap and Sushiswap. It appears that in some cases, they actually bought some $UMB back.

There is a high likelihood that the hackers have sold all the $UMB tokens that have been taken from the hack. For now, Chainswap has frozen our $UMB tokens on BSC as a precautionary measure. Please take note that $UMB on BSC cannot be swapped on Pancakeswap or transferred to other wallets.

Our Plan of Action

• This was a hack on Chainswap, and we have determined that our token contracts, as well as our staking contracts, have not been and will not be affected and continue to be secure. As a result, we have decided to NOT issue a new token contract to replace UMB or rUMB.
• To counteract the additional $UMB sold by the hackers into the market, Umbrella will buy back 110 ETH worth of $UMB on Ethereum — the amount the hackers made off with.
• As a community project by design, we will keep the 110 ETH worth of $UMB in a publicly disclosed wallet (0x87ea777f9909e233a569224a53A4873FeC97D5d3), and as a community, decide what to do with it. One possible option could be to donate to a charity or charities of the community’s choosing.
• We have already been working on our own bridge for some time now, initially as a means for cross-messaging across blockchains, but since the first Chainswap hack, we have been repurposing it and will be looking to launch our own asset bridge in the near future for bridging across ETH-BSC as well as with other future supported chains. This bridge will be extensively tested and audited in order to be both safe and secure.
• Once our own bridge is launched, we will swap the old UMB on BSC with the newly issued UMB tokens on BSC from our own bridge.
• Effective immediately, we will no longer rely on Chainswap for token bridging moving forward.

While we condemn this hack and theft, our top priority is to our project and our community. . Of course, we take these types of situations very seriously, and are actively working to address all the issues. Please stay tuned for any further updates.

We are fortunate that our project was not and has not been hacked. And while this may be a short-term challenge, it is just that, a short-term issue that we believe we can address and surmount. We remain committed to the goals of the project to continue to deliver results and progress for our community. We just went live on BSC Mainnet and will be on track to continue to go live and support more blockchains (ETH, SOL, MATIC, and others) across the remainder of this year. So expect more big news on several fronts in the coming weeks and months.

And as always, we want to thank our community for the continued support and faith in Umbrella Network.

The Umbrella Network Team