Yesterday around 2pm CT, one of the CreatorDAO wallets holding a portion of our liquidity pool (LP) funds was compromised through a phishing attack.
While attempting to access CowSwap, we failed to verify the URL and connected the wallet to a malicious site. No transactions were knowingly approved beyond the wallet connection, but that alone was enough to exploit the wallet and drain the LP position.
All subsequent transactions were rejected, but the damage had already been done. Approximately $52,630 was taken from the LP - around $26,315 in WETH and $26,315 in
$CREATOR, with the
$CREATOR tokens immediately sold.
As a precaution, our liquidity was split across two separate wallets specifically to mitigate situations like this. Because of that structure, the second wallet remains secure and there is still approximately $61,000 in liquidity currently in the pool.
Yesterday was meant to be a positive milestone as we prepared to announce our liquidity migration to Hydrex. Instead, weβre sharing this unfortunate update. While the compromised funds cannot be recovered, we are actively evaluating next steps, including adding additional liquidity to stabilize and support the pool. Weβll continue to keep everyone updated as we move forward.