Bitcoin
$ 8,872.6
Ethereum
$ 209.48
XRP
$ 0.1612

Bug Forces Shutdown of Bitcoin-Backed Ethereum Token tBTC

Blockchain venture studio Thesis has put a pause on deposits into tBTC, its new platform meant to put BTC on Ethereum so BTC can be used in decentralized finance (DeFi).

The Thesis team cited a bug, but is not disclosing details until all funds have been safely withdrawn from this iteration of tBTC. Thesis is now helping early users withdraw any BTC that had been deposited.

The project lead behind the new system, Thesis CEO Matt Luongo, sent the following statement to CoinDesk via a spokesperson:

“While the tBTC dapp was being tested over the weekend in its alpha version, a couple of community members put a few BTC into the contract before testing had concluded. Meanwhile, an issue in the dapp that was missed by our security audit was found by two of our contributors, and we decided to pause deposits for now to ensure the safety of funds. It is thanks to the strength and engagement of our community that this was identified quickly and all funds are safe.”

Luongo said the priority now was to further enhance the security of the system before announcing a timeline to re-deploy it. A new audit is being conducted by Trail of Bits; another auditor will also be enlisted and its bug bounty has been increased tenfold.

Luongo first announced that tBTC had been paused at 5:58 UTC on Monday. It had been live for two days. He credited a member of the Thesis team for finding the flaw, and Summa’s James Prestwich for verifying it. 

Luongo wrote later in the Twitter thread, “Because the system is young and most minters are active community members, I think we can get this done in 1 to 2 days. Though we fixed the issue in code last night, we don’t want to expose it until all funds are drained.”

Prestwich declined to comment. Luongo wrote on Twitter that a full post-mortem is forthcoming. A Thesis spokesperson told CoinDesk this will likely be released tomorrow.

The security model for tBTC is described in its documentation. It delineates four things Thesis can do with its key to the smart contract. Among those, it can pause new deposits one time for 10 days. This is how Thesis stopped deposits Monday, but the option can only be used once.

That documentation also says, “The first version of tBTC has been built without any ability to upgrade contracts.” The Thesis team has not confirmed that it will deploy a whole new smart contract.

Disclosure Read More

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Related Posts

Subscribe To Newsletter

Bitcoin News

Presenting Bitcoin’s Best During the Halving
May 25, 2020By
Bitcoin Cash Tokenization Bolstered by the Creation of an SLP Foundation
May 25, 2020By
What is the Grayscale Bitcoin Trust?
May 25, 2020By




Ethereum News

In
Colombia, Deloitte, ConsenSys Sign On to WEF’s ‘Blockchain Bill of Rights’
May 23, 20200
In
RenBTC Quietly Goes Live in Latest Bid to Bring Bitcoin to Ethereum
May 22, 20200


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin8,872.6 0.52 % 0.69 % 8.21 %
Ethereum209.48 0.02 % 1.87 % 10.66 %
Tether0.9992 0.00 % 0.17 % 0.04 %
XRP0.1612 0.13 % 2.59 % 8.51 %
Bitcoin Cash231.92 0.57 % 2.01 % 3.54 %
Bitcoin SV186.37 0.44 % 1.83 % 2.86 %
Litecoin43.01 0.37 % 0.18 % 1.39 %
Binance Coin16.36 0.42 % 0.89 % 0.47 %
EOS2.530 0.56 % 0.08 % 3.35 %
Tezos2.720 0.63 % 0.82 % 4.03 %