Important cryptocurrency exchanges, among them, OKEx, have decided to suspend deposits of ERC20 tokens. The main reason behind that is that they discovered a serious bug that affected some smart contracts on Ethereum. The information has been released by OKEx in a statement on April the 25th.
Crypto Exchanges Suspend ERC20 Deposits
OKEx, one of the most important cryptocurrency exchanges on earth, has decided to suspend ERC20 token deposits to its platform. The third cryptocurrency exchange by trading volume explained that attackers were exploiting a bug that allowed them to create tokens out of thin air. The bug is known as “BatchOverFlow” and it allows individuals to manipulate token prices.
“We are suspending the deposits of all ERC-20 tokens due to the discovery of a new smart contract bug – “BatchOverFlow”. By exploiting the bug, attackers can generate an extremely large amount of tokens, and deposit them into a normal address. This makes many of the ERC-20 tokens vulnerable to price manipulations of the attackers.”
This is the reason why they will be suspending deposits to their platform. At the same time, the exchange explains that they informed the teams affected and they are trying to find a solution to this problem.
Moreover, Okex explained that if users deposited ERC20 coins and did not receive them, everything is okay with them. They will be credit on their accounts as soon as the problem is solved. But OKEx was not the only crypto exchange or platform that decided to halt deposits of ERC-20 tokens.
Changelly Halts ERC20 Deposits
The cryptocurrency platform Changelly announced that deposits of ERC-20 tokens is also temporarily suspended. As the company explains, they have registered some suspicious transactions in the platform.
The company stated:
“Built on our earlier efforts in analysing EOS tokens, we have developed an automated system to scan and analyse Ethereum-based (ERC-20) token transfers. Specifically, our system will automatically send out alerts if any suspicions transactions occur.”
The system implemented by Changelly raised an alarm that alerted about a very unusual transaction with BEC tokens. According to the company, the BatchOverflow occurs every single time that there is an attempt to use a numeric value that is not in the range that the variable is able to represent with its allocated number of bits.
Another token affected is Smartmesh (SMT), that can be tradeable on Huobi, Gate.io, Hitbtc, and OKEx. The other token identified is Beautychain (BEC).
Even when these cryptocurrencies are not so known as Bitcoin or Ethereum, if those who exploited the bug trade them against BTC or ETH, they can modify the normal trend of the market.
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Tags:BugChangellyCryptocurrency Exchanges Newserc20ERC20 BugERC20 CryptocurrenciesEthereumethereum newsOKExOKEx Newssmart contractsSmart Contracts Bug