Home - News - Why CZ Uniswap Tweet Was Irresponsible


July 12, 2022

Why CZ Uniswap Tweet Was Irresponsible

Zhao Changpeng (CZ) tweeted about a possible vulnerability in the Ethereum blockchain’s Uniswap V3 protocol. He disclosed that the hacker had already stolen roughly 4295 ETH and was using Tornado Cash to launder the money.

For his part, CZ used the tweet to alert the token’s only known contact information: his Twitter handle, @Uniswap Token. Others blasted CZ’s statement as “very reckless” and praised his devotion to the broader security of the crypto industry.

The Uniswap protocol was totally safe, as was subsequently explained by Uniswap and by CZ. The attack was a successful phishing effort, as was the exploit itself. Despite CZ’s apology for the erroneous alert, he was slammed by numerous industry professionals for causing unnecessary fear in the market.

A 9 percent drop in the value of UNI, Uniswap’s native token, occurred in the last 24 hours.

Binance’s CEO has indicated that Binance’s threat intelligence technology analyzes public blockchains on a regular basis to detect any suspicious activity that may be damaging. The threat intelligence categorized a group of transactions as suspicious. The malevolent party’s public address was also disclosed in CZ’s tweet.

At Metamask, security researcher Harry Denley discovered that the phishing effort targeted 73 399 addresses with fake information about a $UNI airdrop. Additionally, he stated how an effort was made to pose as Uniswap V3: Positions NFT in order to trick users into clicking on a fake link.

Another security specialist, Samczsun, described the phishing effort as a highly effective one. A privacy program called Tornado Cash is then used by the hacker to launder the money he’s just made.

Also Read:  Digital Euro Roadmap Will Soon Be Finalized

Community advocate ChainLinkGod.eth, a member of the ChainLink community, condemned CZ’s actions as reckless, given the fact that disinformation travels quickly. Frank Chaparro, the host of The Scoop Podcast, echoed these thoughts.

Panic and incorrect information are legitimate concerns for these people. The rumor that Uniswap had been hacked was widely disseminated by influential people, however, the incident was simply a phishing attempt. Two big crypto influencers, Theweekend.eth and ap3father fell into the same trap and urged their followers not to use Uniswap.