Blockchain security firms, CertiK Alert and Peckshield revealed that there was abnormal activity related to the approval function in Sushi's Router Processor 2 contract, which aggregates liquidity from various sources to find the best coin-swapping price. The bug resulted in a $3.3 million loss in just a few hours.
As per the DefiLlama anonymous developer 0xngmi, the recent hack would only affect users who performed swaps on the protocol within the last four days. Jared Grey, who is leading the development of Sushi, advised users to cancel permissions for all contracts on the protocol immediately. He informed that Sushi's RouteProcessor2 contract had an approval glitch and requested users to revoke approval as soon as possible. To tackle the issue, a list of contracts from various blockchains requiring revocation has been compiled and posted on GitHub.
Jared Grey announced on Twitter a few hours after the SushiSwap attack that a considerable portion of the affected funds had been retrieved through a white hat security procedure. According to Grey, "more than 300ETH from CoffeeBabe of Sifu's stolen funds" had been successfully retrieved. Furthermore, the team is currently working with Lido's team to recover an additional 700 ETH.
Over the weekend, the Sushi community was embroiled in a tumultuous situation. On April 8, Jared Grey and his legal representatives released a statement regarding the recent subpoena from the United States Securities and Exchange Commission.
Grey clarified that the SEC's investigation was a confidential inquiry aimed at gathering facts to determine if any federal securities laws had been breached. He also confirmed that as of that time, the SEC had not come to any conclusions regarding any violations of United States federal securities laws by anyone associated with Sushi.
According to Grey, he is actively cooperating with the SEC investigation. In response to the subpoena, a proposal for a legal defense fund was put forth on Sushi's governance forum on March 21.
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