According to PeckShield, a smart contract security firm, the hacker was able to steal the cryptocurrency from Uniswap using a phishing tactic.
Prior to the hacking incident, the hacker targeted the liquidity provider using a fake Uniswap airdrop token as phishing bait. Following that, the victim claimed the token and interacted with the malicious smart contract, giving the hacker indirect control over their wallet.
During the attack, the wallet was supplying $8 million to a WBTC/USDC liquidity pool on Uniswap version 3.
The hacker exited the user's liquidity position after the attack, swapped the assets, and transferred them out. The hacker routed the funds through Tornado Cash, a transaction mixer on the Ethereum network, according to the Block.
The hacking incident occurred three weeks after Uniswap hired a former New York Stock Exchange president as an adviser.
Stacey Cunningham will help Uniswap Labs' business by focusing on regulation for Uniswap's role in DeFi, according to Blockchain.News.
Cunningham said in a statement that she joined Uniswap Labs because “she believes in the potential of a decentralized exchange and in Uniswap's commitment to fairer markets.”
Despite the current challenging market environment, the hack in Uniswap's wallet and the new appointment have occurred.
The prolonged drop in crypto prices, combined with wider tech sector woes, has forced many crypto firms to lay off employees, as market participants brace for even more difficult times ahead.
Coinbase, BlockFi, Crypto.com, and Middle Eastern crypto exchange Rain Financial, among others, have recently laid off dozens of employees due to the difficult market, according to Blockchain.News.