Security/Hacker

Aztec Labs: Attacked Product Discontinued Four Years Ago, No Control Over It

according to Aztec Labs monitoring, the team is investigating a potential vulnerability affecting an Aztec payments product that was discontinued in 2021. Approximately $2 million was transferred from an immutable smart contract. This discontinued product is an immutable Stage 2 Rollup version that was deactivated in 2022. Aztec Labs does not hold the admin keys or any control over the system, and thus cannot pause or upgrade it. This incident is separate from the attack on the Aztec Connect product on June 14. The Aztec Foundation stated that the product affected by this attack is not associated with any smart contracts of the current network or the AZTEC ERC20 token.

Aztec Network Attacked, Losses Exceed $2.15 Million; Root Cause is a Mismatch Between ZK Proof and L1 Settlement Boundaries

According to analysis by BlockSec Phalcon (@Phalcon_xyz), Aztec Network's RollupProcessorV3 contract was attacked, resulting in losses exceeding $2.15 million. The root cause is that `numRealTxs` was not effectively bound to the transaction set enforced by the ZK proof, causing a deviation between the proof verification path and the L1 settlement logic's interpretation of the transaction list.The attacker exploited this vulnerability to move real deposits to slots not processed by the settlement logic, bypassing the `decreasePendingDepositBalance()` function. By creating unbacked private balances out of thin air, they were able to withdraw funds through the normal settlement process. A total of seven assets were involved.