The incidents occurred due to two necessary and sufficient reasons:
- Bifrost’s multi-signature service private key leaked
- The security of the on-chain business logic has certain loopholes
Bifrost has fixed the loopholes in the on-chain logic through on-chain governance at the first time, eliminating the possibility of similar problems from the root. At the same time, we will conduct a round of internal and external code reviews in the next period of time to ensure the security of all existing businesses.
Regarding the private key leak, we are further investigating the underlying cause of the leak. Before that, all related multi-signature services have been deactivated and temporarily replaced by governance. We will redeploy the multi-signature service in a more decentralized and secure form while ensuring that there are no loopholes in the service deployment. In the more distant future, when xcm gains more capabilities, we will completely get rid of our dependence on such multi-signature services.
In addition, it is worth mentioning that this incident only affected the Bifrost treasury. All assets and logic directly related to users are completely safe, and all users were not affected throughout the process.