Statemind Saves Crypto Companies $350 Million Shows Industry Why Blockchain Audits Matter

Over the past few days, a massive investigation has been launched into an anonymous white hat tipster who miraculously saved several top crypto protocols from significant losses to the tune of $350 million and counting. The community eventually discovered that the hero of the story was blockchain security auditing firm Statemind.

The company is relatively new, but its impact on the cryptocurrency industry is already being recognized and appreciated in a significant way. The recent situation is also the perfect example of why blockchain audit firms are so important and can potentially save businesses millions in damages.

Here’s everything you need to know about the recent blockchain vulnerability in Avalanche, SushiSwap, Abracadabra and other protocols. We will also shed some extra light on Statemind itself.

All About the $350M Vulnerability and White Hat Tipster

Across the crypto space, the most popular protocols are regularly bombarded with hackers looking for bugs and other backdoors into the underlying code that can be exploited for personal gain. These advanced hackers know that there are millions, even billions, at stake with these blockchain networks across all assets, making them a valuable target at all times.

The source code must be free of any vulnerabilities, otherwise someone will find it. In the recent case of Statemind and a handful of top protocols, the cryptocurrency community was fortunate that the blockchain security auditing firm found the critical precompile vulnerability before a malicious actor did.

Otherwise, the estimated damages would have been more than half a billion dollars, or at least $350 million. Total damage estimates are still rising as the situation is fully assessed. Not only did Statemind prevent massive losses across the crypto community, but they also didn’t even seek credit for it and submitted a tip anonymously to ImmuneFi.

Statemind is moving forward after protracted investigation of the crypto community

Not content with not knowing who the tipster was, developers took to the crypto twitter community and began searching for answers. For the sake of transparency, those affected began sharing their findings related to the vulnerability on social media and published post-mortems that talked about what went wrong.

In the end, Statemind came forward, and the affected blockchain developers expressed their deepest gratitude. It has also put Statemind in the spotlight across the crypto industry as both a hero and as a new audit firm clearly worth paying attention to.

👀👀@statemindio came forward as the anonymous white hat who tipped off the teams involved: https://t.co/MmG4hkkad7

Thanks again for all your work in alerting the community to the issue! 🫡

— Patrick “The Faucet” O’Grady 🔺 (@_patrickogrady) 8 September 2022

Blockchain audit firms are becoming increasingly necessary as blockchain protocols become more complicated and there is so much money at stake. Regular auditing and code review may have an upfront cost, but can save crypto companies and their users a fortune if and when something goes horribly wrong.

Learn more about Statemind Blockchain Security Auditing

Statemind.io is a premier blockchain security auditing company with over 100,000 LoCs of solidity and Vyper experience. The company recently came in 14th in the Paradigm CFT 2022. Clients include LIDO, 1INCH, and Yearn.Finance, and it’s easy to see why, after the company managed to save other blockchains and users from losing funds.

To learn more about Statemind.io or request an audit, visit the official website.

Disclaimer: This is a sponsored post brought to you by Statemine.